The $70 billion auction drew a high yield above the when-issued rate, with a tail exceeding the six-month average.
The US Treasury sold $70 billion of 5-year notes at a high yield of 4.408%, above the 4.399% when-issued level at auction. The tail of +0.9 basis points surpassed the six-month average of 0.6 basis points, signaling weaker demand.
The bid-to-cover ratio of 2.28x fell short of the 2.33x average, while direct bidders took 27.22%, above the 21.4% average. Indirect participation dropped to 59.25% from a 65.6% average, with dealers absorbing 13.53%.
The auction received a D+ grade, reflecting below-average demand metrics despite direct bidder strength.