Treasury Pays Highest Rate on 10-Year Debt in 11 Months
By Cynthia Lin       Mediocre demand forced the U.S. government
to pay a borrowing cost above 2% at its 10-year debt sale
Wednesday, marking the highest rate paid in 11 months.      The
$24 billion offering drew below-average demand, booking a 2.68
bid-to-cover ratio compared with a 2.96 average over the last
eight 10-year note auctions.      The notes sold at a yield of
2.046%, the first time the government has had to pay a rate
above 2% since April 2012.      This relatively juicier yield
managed to draw interest from domestic investors. Direct
bidders, mostly comprising U.S. banks and investment funds,
bought nearly a quarter of the total offering, versus a 22.2%
average. This continues a trend started late last year as this
group of investors ramp up the amount it wins at government debt
auctions.      For Wednesday, that wasn't enough to offset tepid
overseas interest, as suggested in the 28% taken by the indirect
bidder group that fell shor