The US Treasury 5-year yield stands at 4.391% in the when-issued market, close to July’s auction high of 4.408%. The Treasury will auction $70 billion in 5-year notes on August 26, amid a sustained rate increase environment. Over five months, this yield has risen by approximately 40 basis points, climbing from 3.980% in March to 4.408% in July, approaching the upper boundary of its annual range between 3.6% and 4.4%. Recent bid-to-cover ratios ranging from 2.29x to 2.35x indicate steady but not spectacular demand from both domestic and foreign investors.
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