• The US government sold a record $42 billion of 10-year notes Wednesday at a lower-than-anticipated yield, soothing investor nerves after a recent rout and indicating confidence that the Federal Reserve will eventually cut interest rates.
• The notes were awarded at 4.093%, compared with a yield of about 4.105% moments before 1 p.m. New York time, the bidding deadline. The lower yield indicates stronger demand than traders anticipated. The auction result also broke a streak of tails — or a weaker result for the previous four monthly sales. US Treasuries as a whole held steady as the details were absorbed.
• The 10-year yield has traded on either side of 4% since mid-December, when Federal Reserve Chair Jerome Powell indicated interest-rate cuts loomed for 2024. The benchmark has neared but never breached the 4.20% level seen when Powell spoke late last year, with expectations for a pivot helping support the market.