The facts prove this to be true. In the recently concluded auction of the U.S. 10-year Treasury bonds, the winning bid rate was 4.342%, lower than the previous value of 4.44%, indicating that investors are willing to purchase Treasury bonds at a lower yield, reflecting strong demand for U.S. Treasuries.
The bid-to-cover ratio was 2.6, down from the previous value of 2.67, meaning the total bid amount was 2.6 times the amount offered, indicating relatively moderate but still healthy demand.
The winning bid rate allocation percentage was 92.86%, significantly ahead of last month's 59.99%, suggesting that there is still enough demand in the Treasury market to support the current interest rate levels. In simpler terms, the bond market still believes that the probability of interest rates rising is low, with rate cuts being the main expectation.
Additionally, the issue of reduced overseas investors mentioned during the 3-year Treasury bonds also appeared in this 10-year Treasury auction. The share of indirect bidders (usually representing foreign buyers) was 56.7%, a significant decrease from the previous auction's 87.9%. This reflects a reduction in overseas investors while also indicating a greater absorption of domestic liquidity.
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