US Treasury’s $70B 5-Year Auction Shows Small 0.3bps Tail as Demand Rises

The U.S. government conducted the sale of $70 billion in five-year notes on Wednesday, achieving a yield that was slightly higher than anticipated, albeit with increased demand for this particular debt instrument.

The notes were priced at a yield of 3.645%, which is marginally above the pre-sale rate of 3.642% and significantly lower than the 4.434% yield recorded in the previous auction.

The bid-to-cover ratio, indicating the level of demand, rose to 2.41 from 2.40 in the last auction.

In terms of participation, dealers accounted for 53.2% of the bids, while direct bidders represented 12.55% and indirect bidders made up 34.23%.

Additionally, the yield increased by 1 basis point, reaching 3.67%.