Awake-in-3D: Treasury Auction Frenzy as 5-Year Notes Soar as Yields Spike

Treasury Auction Frenzy: 5-Year Notes Soar as Yields SpikeOn February 26, 2024By Awake-In-3DAfter a record-breaking $63 billion 2-year treasury auction, a $64 billion 5-year treasury auction followed, also setting a record for that tenor. The 5-year auction yielded 4.320%, up from the previous month. The bid to cover ratio improved modestly to 2.41. Foreign Indirect purchases were at 63.5%, up from the previous month but below recent averages, while US Direct purchases increased to 19.7%. Dealers were left with 16.8% of the bonds. Yields rose significantly after the auctions, with the 10-year reaching above 4.30% from below 4.22% earlier. What this…