The Treasury sold $42B in Five-year notes on Tuesday at a yield of 2.665%, the highest since July.
- The Bid – Cover ratio, which measures the amount bid for each $1 auctioned, came in at 2.59 times, matching the average at the last four monthly sales. The ratio was stronger than the average of the last 10 auctions.
- Indirects bought 44% vs. a recent Avg. of 48.2%.
- Direct bidders purchased another 13%, the highest since Oct. 2008 and compared to an average of 4.6% in the last four sales.
- Alloted at High 31.16%
After the auction, yields on 10-T fell 1 bpt to 3.84%, hovering near a four-month high.