Prior was 3.955% Bid to cover at 2.34 vs 2.33 prior Primary Dealers 12.8% Direct 12.3% Indirect 74.9% A negligible tail of 0.1 bps.
Treasury yields have been falling steadily since the May 19 highs
The optimism regarding a US-Iran deal helped ease inflation concerns as it also contributed to lower oil prices. Nevertheless, an agreement has not been reached yet and the Strait of Hormuz remains closed. For background, the US Treasury funds federal borrowing by selling marketable securities, bills, notes, bonds, FRNs, and TIPS, through regularly scheduled public auctions that set the clearing yield.
The 5-year note is auctioned monthly: announced in the second half of the month, sold a few business days later, and issued on the last calendar day. Bids come in two forms. Noncompetitive bids, typically from retail investors, agree to take whatever yield the auction produces.