The U.S. Treasury's auction of $70 billion in five-year notes came in with a high yield of 4.393%, slightly above the 4.391% pre-auction trading level at the 1 p.m. New York time bidding deadline, pointing to demand that was marginally softer than anticipated. This marks the tenth consecutive poorly received sale for this maturity.

At the bidding deadline, the five-year yield had climbed nearly 5 basis points on the day, and the market's muted reaction to the auction results left the 5-year/30-year yield curve roughly 3 basis points flatter on the session. Primary dealers took down 10% of the offering, one of the lowest allocations on record, while indirect bidders saw their share rise to 61.5% and direct bidders accounted for 28.4%. The bid-to-cover ratio stood at 2.37 times, the highest this year, compared with an average of 2.32 times over the past six auctions.