Treasury’s $38 billion auction of 10-year notes described as “good” to “fair”

The Treasury’s $38 billion auction of 10-year notes Wednesday afternoon went smoothly, producing what observers described as “good” to “fair” results. Gregory Faranello, head of U.S. rates for AmeriVet Securities in New York, said that “it was a good auction in general, with good demand from end users, and it will alleviate some fears short term.” However, Thursday afternoon’s auction of $23 billion in 30-year bonds “could be trickier,” given the release of July’s CPI data during the New York morning. Treasury yields were mixed following Wednesday’s 10-year auction.