10 Year Treasury Note auction follow-up

Bloomberg's assessment:

"Buyers have returned in force to Treasury coupon auctions. The April 10-year note auction, a reopening of the February 3.625 percent coupon, posted a bid-to-cover ratio of 3.72 for the highest rate in the last nine years of data.

The $21 billion auction stopped out at 3.900 percent, 3-1/2 basis points below the 1:00 bid. Retail demand was very strong with direct and indirect bidders taking down 59 percent of the auction vs. an average of 51 percent.
New troubles for Greece have increased the value of the dollar and are giving a boost to U.S. Treasuries. Treasury prices are extending gains in reaction to the results. Tomorrow the Treasury auctions $13 billion of 30-year bonds. "

Partcipants making money from falling yields and rising dollar!

10 year Treasury auction today

Given the recent push up in rates, the attention on today's 10 year Treasury note auction will be greater than usual. Yesterday's auction of 3 year Treasury notes went fairly well as evidenced by the results:

Source: Bloomberg/Econoday

Note in the table the respectable bid-to-cover ratio of 3.10. Buyers are definitely not on strike at the shorter maturity range of the yield curve.

To get today's results go to http://www.bloomberg.com/ after 1 pm, and click on "Economic Calendar" on drop list for "Market Data".
There is a serious tug-of-war going on with U.S,. interest rates as record deficit financing issuance is putting upward pressure on rates and Europe's difficulties are causing a reallocation out of the Euro into the dollar and thereby into U.S. Treasuries creating downward rate pressures.
In the background is the ongoing question of when the Fed will begin to remove the punchbowl as the economic recovery picks up.