The US Treasury conducted multiple bond and bill auctions between June and July 2025, covering maturities from 4-week bills to 30-year bonds. Notable auctions include the 30-year bond sale on June 12, which offered $22 billion at a high yield of 4.844%, with a bid-to-cover ratio of 2.43 and indirect bidders taking 65.2% of the issuance. The 20-year bond auction on July 23 sold $13 billion at a high yield of 4.935%, with a bid-to-cover ratio of 2.79 and 67.4% accepted by indirect bidders. The 10-year note auction on July 9 offered $39 billion at a 4.362% yield, with a bid-to-cover ratio of 2.61. The 10-year Treasury Inflation-Protected Securities (TIPS) auction on July 24 sold $21 billion at a high yield of 1.985%, slightly below the when-issued yield of 1.99%, with a bid-to-cover ratio of 2.41 and 75.33% of bids awarded at the high yield. Shorter maturity auctions included 4-week, 3-month, and 6-month bills with yields around 4.1% to 4.25%, and bid-to-cover ratios ranging from 2.69 to 3.26. The 5-year note auction on June 25 sold $70 billion at a 3.879% yield with a bid-to-cover ratio of 2.36. Across these auctions, indirect bidders, including foreign buyers and asset managers, consistently took a majority share, while primary dealers and direct bidders accounted for smaller portions. Demand metrics such as bid-to-cover ratios remained generally stable or improved in recent auctions, indicating steady investor interest in US Treasury securities.
The $21B US 10-year TIPS auction stopped through at 1.985%, slightly below the 1.99% WI. Pretty decent demand with a 2.41 bid-to-cover. Indirects took 62.7%, directs 32%, and dealers just 5.4%. 75.3% of accepted bids cleared at the high yield. Overall Auction Grade: B+
10yr TIPS Auction Results: 1.985% 0.5 bps through BtC 2.41 Indirects 62.7% Directs 32% Dealers 5.36% Seems like good demand from Asset Managers (part of Investment Firm allotment and Direct demand), we'll see next month.
US 10-Year TIPS Auction High yield 1.985%, vs WI yield 1.99% (stopped through 0.5 bps) Bid-to-cover ratio 2.41 US sells $21 bln Awards 75.33% of bids at high Primary dealers take 5.36% Direct 31.95% Indirect 62.69%