U.S. Treasury Yields Rise

U.S. Treasury yields rose after the Treasury Department auctioned $35 billion in five-year notes at a high yield of 1.387 percent.  The bid-to-cover ratio, an indicator of demand, was 2.35, lower from a recent average of 2.63. This auction’s bid-to-cover ratio was also the weakest since July 2009, resulting in the issue to sell at higher-than-expected yield, Treasury data showed.

Indirect bidders made up 55.7 percent, slightly higher than a recent average of 55 percent, while direct bidders took 4.7 percent, well-below the recent average of 11 percent and the lowest since June 2013.

Five-year Treasury yields rose to 1.462 percent following the sale, up from 1.3667 percent before. Benchmark yields also rose following the sale, rising to 1.9182 percent from 1.8853 percent. Thirty-year bond yields rose from 2.4993 percent to 2.4822 percent after the auction.


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