US Treasury yields retreated on October 7 after a strong $39 billion ten-year note auction, Reuters reported. Earlier selling had pushed ten- and thirty-year yields to roughly 24-year highs as oil moved above $100, reviving inflation concerns.
The ten-year yield reached 5.364% before easing to 5.284% in afternoon trading. Falling oil prices supported the recovery, alongside the auction’s evidence of demand for longer-dated debt.
The auction priced at 5.3%. Bids covered the offering 2.77 times, compared with a six-auction average of 2.54. Primary dealers retained 2.5%, indicating that other investors absorbed most of the sale.
Reuters also described concerns that large corporate borrowing could compete with Treasuries for capital. Reports of SpaceX seeking $40 billion to finance chip purchases added to those concerns.
The thirty-year yield stood at 5.669%, while the two-year yield was 4.768%. Investors were also assessing Federal Reserve meeting minutes showing differing views on the rationale for raising rates.