After today's very disappointing buyback announcement, which at $6BN came in far below whisper expectations of $10BN, and which sent yields surging to 4.85%, many were on edge ahead of today's $39 billion sale of 10Y paper. In the end, it priced far stronger than expected, with today's selloff providing a sufficient concession to stir up enough demand to avoid a fullblown bond market panic. 

The 9 Year/11 month reopening of cusip ER0 stopped at a high yield of 4.834%, up from 4.680% in August, and the highest since August 2007!

Just as importantly, the auction stopped through the When Issued 4.384% by 1.5bps, the biggest stop through since April 2025, which was some much needed good news in a day when yields soared briefly above 4.85% on their path to the inevitable date with 5.00%

The bid to cover was stellar at 2.713, it jumped from 2.532 in August and was the highest since April 2016.

The internals were even stronger, with indirect bidders taking 79.18% of the issue, one of the highest on record, while primary dealers were left with just 4.31%, the lowest participation since late Sept 2025. Direct took down 16.51%, right in line with the recent average of 16.42%.

In short, this was a stellar auction, which helped pare some of the earlier blowout in yields following today's buyback announcement, with the 10-year note last yielding 4.837%, up 3.26bp on the session but off its pre-auction highs.