U.S. Government Sells $70 Billion in Five-Year Notes

The U.S. government sold $70 billion of five-year notes on Wednesday at a slightly higher-than-expected yield even as demand for this tenor inched higher.

The notes were awarded at 3.645%, which is below the pre-sale, or when-issue, rate of 3.642%, and significantly lower than the 4.434% high observed in the prior auction.

The bid-to-cover ratio, a measurement of demand, for the auction increased to 2.41 from 2.40 seen in the last auction.

Dealers comprised 53.2% of the bids, while direct bidders accounted for 12.55% and indirect bidders constituted 34.23%.

Additionally, the yield on five-year notes rose by 1 basis point to 3.67%.