FAST FIVE: Mediocre, Tailing Sale Of 5Y Paper Concludes Treasury Auction Doubleheader
Mediocre, Tailing Sale Of 5Y Paper Concludes Treasury Auction Doubleheader After today's mediocre sales of $42 billion in 2Y paper, moments ago the US Treasury completed the second auction of the day (courtesy of the week's abbreviated schedule) when it sold $43 billion in 5Y notes in another average auction.
The high yield of 3.974% was the second consecutive decline after peaking at 4.228% in September.
This was the 6th 5Y auction tail in the past 8 auctions.
The internals were also fine, with Indirects taking down 66.2%, down from 68.0% last month, and above the 62.4% recent average; and with Directs awarded 18.7%, Dealers were left holing 15.1%, the lowest since February.
Overall, a mediocre, tailing auction but with stronger than expected internals.