The 5-year Treasury Note auction (of $37 billion in securities) just wrapped up and it was pretty good. The notes sold at a yield of 2.7%, compared with pre
-auction talk of 2.724%. Indirect bidding was strong at 62.8%, and the bid-to-cover ratio came in at 2.58. Those were the highest figures since December 2004 and October 2007, respectively. Still, those metrics were slightly worse than the 2-year auction. That fits with the pattern that the further out on the yield curve you go, the weaker the demand tends to get.