US Treasuries surrendered their daily gains around the time of the $39 billion 10-year note reopening auction at 1 PM New York time. Despite adequate demand metrics, the auction's winning yield still exceeded pre-auction trading levels. Earlier in the session, US bonds followed European debt markets in mild bull flattening. The market showed little reaction to the afternoon release of FOMC meeting minutes.

Shortly after 3 PM New York time, Treasury yields turned higher across the curve, with the short end rising approximately 2 basis points on the day.

The 10-year Treasury yield traded around 4.13%, near daily highs, with the afternoon's gradual yield rise supported by the auction results.

The 10-year note's winning yield came in about 0.3 basis points above pre-auction trading levels. Subscription metrics were solid: primary dealers were awarded 9.1%, recovering from last month's record low but still below the recent average of 10.6%. Indirect bidder allocation fell to 66.8%, while direct bidder allocation rose to 24.1%.

As of 3 PM Eastern time: - US 2-year Treasury yield: 3.5823% - US 5-year Treasury yield: 3.7185% - US 10-year Treasury yield: 4.1268% - US 30-year Treasury yield: 4.7222% - US 2-year/10-year yield spread: 54.248 basis points - US 5-year/30-year yield spread: 100.193 basis points