After yesterday’s stellar 2Y auction, moments ago the Treasury sold $34 billion in 5 Year paper in what can only be described as a quite ugly auction.
The high yield printed at 1.875%, which maybe because it was the lowest stop since November’s 1.76%, drew far less bidside interest than yesterday’s auction. It also tailed by 0.7bps to the 1.875 When Issued.
The internals were just as ugly, with the Bid To Cover slumping to 2.34 from last month’s 2.37 and the 6 month average of 2.45.