The U.S. Treasury sold $39 billion of 10-year notes on October 7, 2026, at a high yield of 5.300%, up 46.6 basis points from the previous comparable auction in September, according to the October 7 official Treasury auction results.
The reopening involved 9-year, 10-month notes carrying a 4.625% coupon, identified as CUSIP 91282CRF0. The securities will settle on October 15 and mature on August 15, 2036. The auction’s bid-to-cover ratio reached 2.77, compared with 2.71 at the September 9 sale.
Auction Demand and Bidder Participation
Treasury received approximately $108.07 billion in bids against $39 billion in awards, excluding Federal Reserve System Open Market Account (SOMA) additions from the standard bid-to-cover calculation.
Indirect bidders received $31.06 billion, representing approximately 80.3% of competitive awards. Direct bidders took $6.62 billion, or 17.1%, while primary dealers received $984 million, approximately 2.5%. Indirect bidding is an auction participation category and does not exclusively represent foreign investors.
The figures compare with September’s 79.2% indirect allocation, 16.5% direct allocation and 4.3% primary dealer allocation. The latest 2.77 bid-to-cover ratio also exceeded the preceding six-auction average of approximately 2.54, indicating greater bidding coverage than the recent comparison period.
Borrowing Costs Rise Despite Broader Bidding Coverage
The previous September 9 Treasury auction cleared at 4.834% for the same $39 billion offering size. Investozora’s comparison of the two official results shows a 46.6-basis-point increase in the high yield, while the bid-to-cover ratio improved by 0.06 and the primary dealer allocation declined by approximately 1.8 percentage points.
These movements show that greater bidding coverage can coexist with substantially higher borrowing yields. The securities priced at $94.864261 per $100 of face value, below par because their 4.625% coupon is lower than the auction yield. Separately, Treasury reported $926.29 million in SOMA awards, bringing total accepted securities to approximately $39.93 billion.
The auction provides another reference point for government financing costs amid elevated longer-term interest rates. For background on the relationship between monetary policy and Treasury securities, see Investozora’s explanation of how the federal funds rate and Treasury yields differ.
