Treasury’s Nov. 10 sale of $42 billion in 10-year notes drew weaker bid coverage and indirect participation than October’s auction, despite clearing at a lower yield. That leaves Bitcoin investors watching whether today’s long-bond sale makes financing more expensive.
Treasury has scheduled a $25 billion sale of 30-year bonds for Nov. 12 at 1 p.m. Eastern. Its result will offer another reading on demand for long-term government debt.
Treasury’s cash plan points to a possible December liquidity window for Bitcoin
The November 10-year auction cleared at a high yield of 5.02%, down from 5.3% at October’s reopening. But its bid-to-cover ratio fell to 2.46 from 2.77, indicating less bidding relative to the amount awarded. The yield measures the return accepted by buyers; coverage describes the volume of bidding.
Indirect bidders received about 61.2% of November’s competitive awards, compared with 80.3% in October. These shares exclude noncompetitive allocations and Federal Reserve add-ons.
The size comparison matters. October’s $39 billion sale reopened the August note, while November offered a new security. August provides a same-size comparison: its $42 billion new issue drew 2.53 bid coverage and approximately 76.7% indirect participation. It cleared at 4.68%, below November’s yield.
November drew weaker participation on both measures against each comparator. August matches its offering size and new-issue status, although the securities and market conditions differ.
BID COVERAGEINDIRECT SHAREBids relative to awardsShare of competitive awardsAug. 122.53Aug. 1276.7%Oct. 72.77Oct. 780.3%Nov. 102.46Nov. 1061.2%01230%50%100%Aug. 12: $42bn new issueOct. 7: $39bn reopeningNov. 10: $42bn new issueNovember drew less bidding and a smaller indirect share against both benchmarks.
BID COVERAGEBids relative to awardsAug. 122.53Oct. 72.77Nov. 102.460123INDIRECT SHAREShare of competitive awardsAug. 1276.7%Oct. 780.3%Nov. 1061.2%0%50%100%Aug. 12 / Nov. 10: $42bn new issuesOct. 7: $39bn reopeningBoth participation measureswere weaker in November.
Change the yield comparison
Change the yield comparisonOctober reopeningAugust new issue
October: $39bn reopening, 5.300%. November: $42bn new issue, 5.020%. November’s yield was lower, alongside weaker participation.
AUCTION HIGH YIELD5.020%Nov. 105.300%Oct. 74.0%4.5%5.0%5.5%November yield: lower than October.
AUCTION HIGH YIELD5.020%Nov. 105.300%Oct. 74.0%4.5%5.0%5.5%November yield: lower than October.
August and November: $42bn new issues. November’s yield was higher than August’s 4.683%, while participation was weaker.
AUCTION HIGH YIELD5.020%Nov. 104.683%Aug. 124.0%4.5%5.0%5.5%November yield: higher than August.
AUCTION HIGH YIELD5.020%Nov. 104.683%Aug. 124.0%4.5%5.0%5.5%November yield: higher than August.
The participation signal is consistent across both comparisons; the yield signal depends on the benchmark.
Different securities and market conditions limit comparison. October was a smaller reopening; August matches November’s offering size and new-issue status. Indirect bidders include domestic investors. No thirty-year outcome or Bitcoin price response is shown.
The November sale was fully subscribed. Indirect bidding also cannot establish foreign capital flight: Treasury’s bidder definitions include domestic and foreign customers placing orders through intermediaries.
How financing conditions could reach Bitcoin
If weaker bond demand translates into higher long-term yields and tighter financing, investors could have less room in their risk budgets for crypto exposure. Firmer demand and stable financing would weaken that channel of concern.
The authors of a 2023 IMF working paper found that U.S. monetary tightening reduced a broad crypto price factor through investor risk-taking. The study examines monetary tightening, rather than the effect of a single Treasury auction.
The financing timetable also limits the cash interpretation. The 30-year auction settles Nov. 16, alongside the other November refunding securities. Treasury’s $125 billion refunding replaces approximately $97 billion of privately held maturities and raises about $28 billion in new private cash. The bond sale’s $25 billion headline amount is gross issuance, rather than wholly new borrowing.
Today’s test is whether buyers return for the 30-year sale, and whether yields rise if demand disappoints.
