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Treasury Dept auctions $23B of 10-year notes at a high yield of 1.503%

The Treasury Department auctioned $23 billion in 10-year notes at a high yield of 1.503 percent. The bid-to-cover ratio, an indicator of demand, was 2.43.

The bid-to-cover ratio rebounded from the lowest level since March 2009 set in July, according to Reuters.

Indirect bidders, which include major central banks, were awarded 72.2 percent.

Direct bidders, which includes domestic money managers, bought 7.6 percent.

The 7-year Treasury note yield fell to 1.3336 percent.

The benchmark 10-year Treasury notes yield last sat at 1.5076 percent, having closed on Tuesday at 1.545 percent.

Thirty-year bonds yields fell to 2.2279 percent, down from a close of 2.257 percent. Bond prices move inversely to yields.

Treasury yields

Symbol
Yield
 
Change
US 3-MO
---
US 2-YR
---
US 5-YR
---
US 10-YR
---
US 30-YR
---

Most U.K. gilts also rose, after the Bank of England failed to meet it bond-buying target in its revived asset-buying program. The bank fell £52 million short of its target to buy £1.17 billion of gilts on Tuesday, the second day of the revived program.

"The Bank of England's failure to persuade U.K. gilt owners to part with them is making asset purchases hard, which is what happened the first time they tried to buy corporate bonds, too," Kit Juckes, strategist at Societe Generale, said in a note on Wednesday.

German bunds — viewed as a "safe-haven" asset comparable to Treasury notes — also rose on Wednesday, as did most Japanese bonds.

In the euro zone, most French, Belgian, Portuguese, Irish, Spanish and Italian bonds gained.

Gilt yields

Symbol
Yield
 
Change
UK 2-YR
---
UK 5-YR
---
UK 10-YR
---
UK 30-YR
---

"The correlation between the European markets and the U.S. markets is undeniably something of interest for a few investors and they do believe that a positive sentiment in Europe is filtering through to American trading sessions with both markets moving in tandem," Naeem Aslam, chief market analyst at Think Markets UK, said in a note on Wednesday.

"This means that any signs of stability in Europe are being cheered on by U.S. investors who are already standing on a solid foundation," he added.

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