US 10-year Treasury auction sees reduced foreign demand, highest yield tail since Feb

The U.S. Treasury’s 10-year note auction drew weaker foreign demand and produced its largest yield tail since February, a sign that overseas buyers are demanding more compensation to absorb U.S. government debt. The reduced participation matters because foreign demand has been a key support for Treasury markets and, by extension, for global risk assets, including crypto. Watch the next 10- and 30-year auctions, the size of the yield tail, and whether the move feeds into Federal Reserve rate expectations.