- Foreign buyers (indirect bidders) acquired 80.34% of the $39 billion 10-year Treasury auction on October 7, 2026, a near-record share, while primary dealers took a record-low 2.54%.
- The auction cleared at a 5.300% yield, the highest since 2002, and below pre-auction market pricing.
- The robust 10-year auction contrasted with a weaker 3-year sale, indicating foreign investors are seeking longer-term income above 5%.
- Long-duration bond ETFs are sensitive to this dynamic: TLT is down 8.39% year-to-date, compared with IEF down 4.52%, and the upcoming 30-year bond auction on October 8, 2026, will test the long end.
Quotes
“Foreign buyers (indirect bidders) acquired 80.34% of the $39 billion 10-year Treasury auction on October 7, 2026, a near-record share, while primary dealers took a record-low 2.54% .”
“The robust 10-year auction, contrasted with a weaker 3-year sale, suggests foreign investors are seeking longer-term income above 5% .”