Foreign Bidders Take Home 60% Of New 5-year Notes

Foreign bidders took home an above-average chunk of new five-year bonds at an auction Wednesday. Indirect bidders, a group that includes foreign central banks, took home 60.1% of the bonds, compared with an average of 59%. The share of new bonds taken home by foreign bidders has increased during every new-bond auction this year, said Tom di Galoma, head of rates and credit trading at ED & F Man Capital Markets. The yield on the new notes was 1.48%, equal to the five-year yield the minute before the auction, which is a sign of average demand, according to CRT Capital Group's Ian Lyngen. Treasury yields were modestly higher after the auction. The 10-year yield was up half a basis point on the day to 1.991%. The five-year yield was up 1.9 basis points to 1478%.