The US Treasury sold $70 billion in 5-year notes at a yield of 4.393%, finishing 0.2 basis points above the pre-auction level, extending a streak of 15 consecutive auctions that failed to meet expectations. The bid-to-cover ratio came in at 2.37x, with direct bidders accounting for 28.4% of the total, well above their recent average of 21.2%. Indirect bidders, including foreign central banks and international managers, took only 61.5% of the offering, below their 65.4% average. American buyers stepped in to fill the gap left by weaker international demand. The 5-year maturity sits at a sensitive point on the yield curve, with major implications for the broader bond market.
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