Poor 5 yr auction
After an uneventful 2 yr note auction yesterday, today’s 5 yr was poor. The yield of 4.899% was almost 2 bps above the pre auction pricing. The bid to cover of 2.36 was well under the one yr average of 2.52 and the smallest since September 2022. Also of note, dealers got stuck with the biggest percentage of any 5 yr auction since also September 2022 at 19.4%.
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