Wall Street's major banks were almost shut out of the U.S. Treasury's 10-year bond auction on September 10th

On September 10, the U.S. Treasury auctioned 10-year Treasury bonds, with the so-called primary dealers (currently 25 in total) securing a record 4.2% in the $39 billion auction. Primary dealers are designated by the Federal Reserve and are expected to participate in all Treasury bond auctions. The remaining portion goes to two other categories of bidders (direct and indirect), which range widely from foreign monetary authorities to asset management companies. This is the smallest amount secured by primary dealers in a 10-year Treasury bond auction since the Treasury began publishing bid participation rate data in 2003.

Other types of notes and bonds also yielded smaller returns, most notably the U.S. Treasury Inflation-Protected Securities (TIPS), with the 10-year TIPS issued in July 2023 yielding 1.5%, the lowest return on record. (Bloomberg)