The Treasury Department auctioned $21 billion in 10-year notes at a high yield of 2.066 percent — lowest since April, according to Reuters. The bid-to-cover ratio, an indicator of demand, was 2.59, versus the 2.67 recent average.
Direct bidders, which includes domestic money managers, bought 10.3 percent, versus a recent average of 11 percent.
Indirect bidders, which include major central banks, were awarded 62.2 percent, well above the 57 percent average.
Indirects were aggressive, getting 90.7 percent of what they bid for versus an 86 percent norm and dealers got 16.1 percent of what they bid for against an 18.5 percent norm, according CRT's analysis.
"Clearly someone wanted to buy this, but the curious point is that such a strong bid has not provoked a deeper rally," according to David Ader, a bond market strategist for CRT Investment Banking.
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Treasury prices dipped on Wednesday as higher oil prices and stocks lowered demand for "safe haven" U.S. government debt.
Bond yields, which move in the opposite direction of prices, were trading within recent ranges — in relatively light volume — as traders awaited the Treasury Department's $21 billion 10-year note auction at 1 p.m. ET.
"It's a deadly quiet day here in the bond market," said David Ader, a bond market strategist for CRT Investment Banking. "It's a light volume day and I think that's going to bode for a soft reception for the 10-year note auction."
Wednesday's trading volume was roughly 70 percent of the 10-day average.
The Treasury kicked off this week's $58 billion debt supply on Tuesday with a three-year note offering that traders categorized as ordinary.