by Wolf Richter
Wolf Street
Fed is seen as deprioritizing inflation fight, while a tsunami of supply heads for markets.
At the auction today, on the eve of the release of the CPI inflation data that may “surprise” markets with a further acceleration of inflation, the US Treasury Department sold $39 billion in 10-year Treasury notes, maturing on August 15, 2034, at a yield of 4.066%, substantially higher than the yield at the last 10-year Treasury auction on September 11 of 3.648%.
There was plenty of demand at the auction, given the juicy yield – yield solves demand problems, that’s what yield is for – including from foreign investors. The total amount bid was $97.3 billion.