U.S. Treasury Auctions 2-Year and 5-Year Notes on July 27, Yields Hit Highest Since December 2024

According to the U.S. Treasury Department, on July 27, the department held back-to-back auctions for 2-year and 5-year Treasury notes with mixed results. The 2-year note auction, worth $69 billion, saw strong demand with a yield of 4.315%, up 12.6 basis points from the previous month and marking the highest since December 2024. The bid-to-cover ratio rose to 2.66 times from 2.64 times previously.

The 5-year note auction, worth $70 billion, posted weaker demand with a yield of 4.408%, up 20.8 basis points from the prior month and also the highest since December 2024. The bid-to-cover ratio fell to 2.28 times from 2.35 times, below the six-month average of 2.33 times.