$39 BILLION 10-YEAR AUCTION TESTS 5% YIELDS

The U.S. Treasury sells $39 billion of 10-year notes today, with results due at 1:00 PM ET, according to TreasuryDirect. The 10-year yield closed at 5.27% on Tuesday, so the sale is on track to be the first 10-year auction above 5% since June 2007, when it cleared at 5.23%. Last month's auction priced at 4.834% with a bid-to-cover of 2.71. Tomorrow the Treasury follows with $22 billion of 30-year bonds.