Treasury's $41 B 5-year auction was well supported
Treasury's $41 B 5-year auction was well supported. It priced strongly and mostly garnered above average results. Only the softer direct bid marred the statistics. The auction stopped at 1.570%, through the 1.574% at the bid deadline, after richening from 1.580% in the lead up to the deadline. And it compares to the 1.600% award rate from September. Excluding the 1.365% from the August sale, this is the lowest award rate since October 2016. There were $98.6 B in bids for a 2.41 cover, above both the 2.32 ratio from last month and the 2.36 average. Indirect bidders took a hefty 65.7%, well above last month's 58.8% and the 58.1% average. The direct bid was 11.5%, shy of both the 14.2% previously and the 14.7% average. It's the weakest since December, and was the only blemish on the auction. Primary dealers accepted 22.8% versus 27.0% and the 27.2% average.