5-Year Treasury Auction Goes Off At Second-Lowest Yield

Banking, finance, and taxes

Published: September 26, 2012 1:35 pm

Last Updated: April 27, 2020 3:04 pm

Treasury prices are firm and yields are lower, not just because of protests in Spain and Greece over the coming austerity measures. Today’s 5-year Treasury Note auction was given an “A” grade from CNBC’s Rick Santelli for this auction as investors are seeking havens from the old risk-on trade that had been on up until this week.

The presiding yield was a low 0.647%, which was apparently the second-lowest yielding auction for the 5-year Treasury. Another show of force was that the bid-to-cover ratio came in at 3.06 and that was the highest demand ratio in nearly six months for the recent five-year auctions. We showed a 2.81 average ratio. Indirect bids were 42% and direct bids were about 10.7%.

Shortly after the auction results the prior 5-year on-the-run Treasury Note showed a yield of 0.63%. That same Note showed a yield of as high as 0.68% yesterday and the yield was as high as 0.70% as recently as September 21. That 5-year rate was 0.74% on September 13 and 0.82% on August 21.

JON C. OGG

Travel Cards Are Getting Too Good To Ignore (sponsored)

Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.

We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.

It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.

We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.