1. U.S. Treasury's 5-Year Auction Falters: Worst Bid-to-Cover in 4 Years, Dealers Forced to Step In
The U.S. Treasury's latest 5-year note auction has delivered another stark signal of weakening demand for government debt. The sale of $70 billion in notes stopped at a high yield of 3.966%, tailing the 'when-issued' yield by 1.4 basis points—the largest such gap since October 2024. More critically, the bid-to-cover ra...