The US Treasury Department's auction of $70 billion in 5-year notes concluded with an awarded yield of 4.200%.

This yield, which is the highest seen since January 2025, came in slightly above the market's pre-auction trading level of 4.193% at the 1 p.m. New York deadline, indicating demand was a touch softer than anticipated.

By the time bidding closed, the yield on the 5-year Treasury had fallen more than 8 basis points on the day.

Following the release of the auction results, Treasuries held onto their gains, with yields hovering near the day's lows.

The spread between 5-year and 30-year yields also remained at a level that was roughly 1 basis point tighter on the session.

Primary dealers were allotted 12.9% of the issue, a slight increase from the prior auction.

Indirect bidders, a category that includes foreign central banks, saw their allotment share decline to 61.6%.

The share awarded to direct bidders rose to 25.5%.

The auction's bid-to-cover ratio, a gauge of demand, came in at 2.35 times, compared to an average of 2.33 times over the previous six auctions.