Terrible 10 yr auction

We’ve had a crazy few trading days (though was building up over the past 3 weeks), growing worries over economic growth, wild FX moves and a 10 yr yield that touched 3.66% early Monday morning and was at 3.93% just before the 10 yr auction. One would have thought that the 10 yr note auction today would do just fine with that backdrop but no, the auction was terrible.

The yield of 3.96% was well above the when issued of 3.93%. The bid to cover of 2.32 was well below the one yr average of 2.52 and the weakest since December 2022. And dealers were left with 82% of the auction, the 2^nd highest since last October.