Bond-market participants got a major surprise Wednesday afternoon when the Treasury Department’s $39 billion auction of 10-year notes produced very strong demand, helping to alleviate concerns that buying interest would fail to hold up given tariff-driven volatility.

T he Treasury’s auction of 10-year bonds on Wednesday encountered solid demand, lowering yields in parts of the fixed-income market and calming fear that buyers are fleeing U.S.

A U.S. Treasury debt auction of $39 billion in benchmark 10-year notes was well received on Wednesday, showing solid investor demand even after a bond market sell-off driven by an escalating trade war between the United States and its major trading partners led by China.