I have a paired data set which I have placed into $x$ and $y$ columns where $x$ are the control values and $y$ are the values following drug treatment. $N=10$ for both $x$ and $y$ columns as they are paired data. Each $x$ is the control for the corresponding $y$.
I have seen in various texts stating that when standard error margins overlap, the data cannot significant. By standard error margin, I am referring to ($SE_\bar x = SD/\sqrt N$).
However, I have conducted two-tailed paired $t$-tests on my data set (comparing the means of all values in $x$ versus the means of all values in $y$) and my results yield statistical significance with a $p$-value $< 0.05$ (despite there being overlapping standard error margins with data in $x$ and $y$).
My question is: in a paired data set, is it possible for there to be statistical significance between the control ($x$) and drug treatment ($y$) despite having overlapping standard errors? My $t$-test was done using GraphPad prism so I'm confident there are no errors in the $t$-test.