<div id="readability-page-1"><div><p>After a mediocre 2Y auction to start the week's coupon issuance this morning, moments ago the Treasury sold 5Y notes in another average auction.</p><p>The sale of $70BN in 5 Year paper stopped at a high yield of 3.955%, down fractionally from 3.980% last month, and tailing the When Issued 3.950% by 0.5bps. This was an improvement from last month's 1.4bps tail, but more concerningly this was the 11th tail in a row for 5Y issues.</p><p><img width="500" height="317" src="https://imageproxy.pbkrs.com/https://files.zhedge.com/cdn-cgi/image/width=1920,quality=75,format=auto/https://assets.zerohedge.com/s3fs-public/inline-images/5y%20tail%20april%2026.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://files.zhedge.com/cdn-cgi/image/width=1920,quality=75,format=auto/https://assets.zerohedge.com/s3fs-public/inline-images/5y%20tail%20april%2026.jpg"/></p><p>The bid to cover was also on the muted side, at 2.330, up from 2.287, it was below the six-auction average of 2.348.</p><p>The internals improved notably, however, with Indirects awarded 72.3%, above last month's 61.9% and also well above the recent average of 62.1%. In fact this was the highest award for foreign buyers since May 2025. And with Directs dropping to 15.03%, Dealers were left with just 12.7%, the lowest since January.</p><p><img width="500" height="313" src="https://imageproxy.pbkrs.com/https://files.zhedge.com/cdn-cgi/image/width=1920,quality=75,format=auto/https://assets.zerohedge.com/s3fs-public/inline-images/5Y%20April%202026.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://files.zhedge.com/cdn-cgi/image/width=1920,quality=75,format=auto/https://assets.zerohedge.com/s3fs-public/inline-images/5Y%20April%202026.jpg"/></p><p>Overall, this was a stronger auction than this morning's 2Y sale thanks to the surge in foreign buyers, which probably offset concerns about the 11th tail in a row. Even so, 10Y yields have pushed to session highs, rising above 4.34% although that's due to the continued rise in oil which remains the only thing that the bond market is focused on for now.</p><p><img width="500" height="313" src="https://imageproxy.pbkrs.com/https://files.zhedge.com/cdn-cgi/image/width=1920,quality=75,format=auto/https://assets.zerohedge.com/s3fs-public/inline-images/5Y%20April%202026_0.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://files.zhedge.com/cdn-cgi/image/width=1920,quality=75,format=auto/https://assets.zerohedge.com/s3fs-public/inline-images/5Y%20April%202026_0.jpg"/></p></div></div>

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<p>The Treasury's recent 5Y auction saw a high yield of 3.955%, slightly down from last month, marking the 11th consecutive tail. Despite this, foreign demand surged, with Indirects awarded 72.3%, the highest since May 2025. The bid-to-cover ratio improved to 2.330 but remained below the six-auction average. Meanwhile, 10Y yields rose above 4.34%, influenced by rising oil prices.</p>

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5Y Auction Tails Despite Jump In Foreign Demand, Yields Hit Session High