US Treasury's Latest 5-Year Note Auction

The US Treasury Department successfully auctioned $70 billion in five-year notes, achieving a high yield of 4.100%. This yield slightly undercuts the previous auction's 4.123%, signaling a nuanced shift in the investment landscape.

Investor Demand and Participation

The bid-to-cover ratio, a critical indicator of demand, experienced a slight decline to 2.33 from 2.42, reflecting a modest decrease in investor enthusiasm. These notes, part of the Series W-2030, are set to mature on March 31, 2030.

Global and Domestic Bidder Breakdown

Auction insights reveal that 75.8% of accepted bids were from indirect bidders, primarily foreign institutions, marking an increase from 74.9%. Direct bidders' participation dropped to 11.0% from 14.5%, with primary dealers covering the remaining bids. The median yield stood at 4.040%, with the lowest accepted yield recorded at 3.980%.