Ugly 10Y Auction: Foreign Demand Plummets, Directs Soar, Resulting In Biggest Tail Since February

Summary

Ugly 10Y Auction: Foreign Demand Plummets, Directs Soar, Resulting In Biggest Tail Since February After a subpar 3Y auction on Monday, today's 10Y auction - which followed another hot CPI print - was downright ugly. Let's start at the top: the high yield of today's auction was 5.020%, which hit just as yields hit their peak for the day, with the 10Y rising more than 10bps above 5.0% for the first time in weeks. Still, this was a drop from last month's 5.317% (which was the highest in over 2 decades), but tailed the When Issued 5.010% by 1 basis point, the biggest tail since February. And with…

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