The U.S. Treasury Department auctioned $42 billion in 10-year Treasury notes at a high yield of 5.02%, coming in above the 5.010% when-issued yield prior to the auction. The bid-to-cover ratio dropped to 2.46 from 2.77 in the previous auction, signaling weaker investor demand. The auction tail of 1 basis point reflected the market demanding a higher yield to absorb the debt, pushing the 10-year Treasury yield back above 5%.