A robust auction of 10-year U.S. Treasury notes (US10Y) on Wednesday offered a welcome dose of afternoon relief to the bond market, helping to pare back an earlier surge in yields.

Before the auction, yields had jumped following a morning announcement by the Treasury Department detailing plans to significantly expand its next buyback of longer-dated bonds (TLT) (TLH) (ZROZ). Following the afternoon sale, Treasury yields retraced some of those earlier gains as the market found its footing on the back of strong institutional demand, with the benchmark 10-year yield rising four basis points to 4.83% at press time, off around three bps from session highs.

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