US Treasury sells $42B 10-year notes at lower-than-expected yield

Investing.com -- The U.S. government sold $42 billion of 10-year Treasuries on Tuesday at a lower-than-expected yield as solid international appetite for the U.S. benchmark note offset a slip in demand.  

The notes were awarded at 4.342%, 1.2 basis point below the expected yield, or when-issue rate, of 4.354%, and below the 4.435% high seen in the prior auction. 

The bid to cover ratio, a gauge of demand, for the auction was 2.60, down from 2.67 previously.

International demand led the bidding, accounting for 71.2%, while director bidders accounted for 19.88% of the auction.

The yield on the United States 10-Year fell 2 basis points to 4.32% following the auction result.