5 yr auction weak

Following a mediocre 2 yr auction yesterday where the yield was spot on with the when issued but the level of direct and indirect bidders were below its one yr average as was the big to cover, the 5 yr auction just posted was poor.

It tailed by 2 bps, dealers got stuck with the highest percentage of a 5 yr auction since September 2021 and the bid to cover was the lowest since September 2022.