The U.S. sold $39B in 10-year notes at a 4.173% yield, with strong demand and low dealer absorption.

The U.S. Treasury sold $39 billion in 10-year notes at a yield of 4.173%, slightly lower than December’s rate, with strong demand shown by a bid-to-cover ratio of 2.554, above the six-auction average. Direct bidders, including domestic institutions, bought 24.5% of the issue, the highest since 2014, while indirect bidders, mainly foreign central banks, took 69.7%. Dealers absorbed only 5.8%, the second-lowest on record, indicating solid end-user demand and stable market conditions.