The U.S. Treasury has successfully auctioned $70 billion in 5-year notes, achieving a yield of 3.879%. This yield slightly exceeded the pre-auction trading level of 3.874%.
The bid-to-cover ratio, which indicates demand by comparing the amount of bids to the amount of securities sold, was 2.36. This is slightly lower than the average ratio of 2.39 observed over the last six auctions.
Primary dealers, who are obligated to bid, received 10.9% of the allocation, compared to their average of 11.3% in the previous six auctions. Direct bidders, which include entities like mutual funds, were allocated 24.4%, higher than their previous average of 18.2%. Indirect bidders, often foreign central banks, received 64.7%, which is below their recent average of 70.5%.
The notes are scheduled to be issued on June 30, 2025, and will mature on June 30, 2030.
