By Richard Leong

NEW YORK, Nov 10 (Reuters) - A solid audience showed up to buy a record $25 billion in benchmark 10-year Treasury notes on Tuesday, but the above-average results failed to impress traders who unloaded U.S. government debt after the auction.

The 10-year auction results appeared underwhelming compared with Monday's robust $40 billion three-year sale, raising concerns over investor appetite for the $16 billion in 30-year bonds for sale on Thursday.

"The auction was well subscribed," said Jessica Hoversen, fixed income market analyst with MF Global Research in Chicago, "but people are still uncertain about supply."

U.S. Treasury prices turned flat Tuesday afternoon, paring earlier gains after the Treasury Department announced the 10-year auction results. For more, see [ID:nTAR000482]

The yield on the newest 10-year notes cleared at 3.470 percent, within market expectations.

The bid-to-cover ratio, a gauge of overall auction demand, was 2.81 at the latest 10-year auction. It was above 2.49 at the August refunding and a long-term average of 2.28.

Indirect bidders, which include overseas central banks, accounted for an above-average 48.2 percent of all bids.

But the indirect share at the 10-year note sale was far below the 68.6 percent at the three-year auction, which was the highest for the three-year maturity. The overall demand for Monday's three-year supply was the highest in about 20 years.