US Treasury Auctions $183 Billion in Treasury Notes

The United States Department of the Treasury conducted a three-day series of long-term securities auctions from August 25 to August 27, 2026, raising a total of $183 billion. The sequence began on Tuesday with a $69 billion auction of 2-year notes, which priced at a high yield of 4.204%. This auction marked the third consecutive stop through, supported by strong international demand as indirect bidders took 66.0% of the issuance.

On Wednesday, the Treasury auctioned $70 billion in 5-year notes at a high yield of 4.393%. While the bid-to-cover ratio of 2.37 was the highest since November 2025, the market response was muted. The auction tailed the When Issued rate by 0.2 basis points, marking the 10th consecutive auction to tail and the 15th without a stop through. Following these results, yields across the curve climbed to session highs.

The series concluded on Thursday with a $44 billion auction of 7-year bonds, which priced at a high yield of 4.512% in line with the When Issued yield. The bid-to-cover ratio rose to 2.505, the highest since May. However, internal demand shifted as indirect bidders' share dropped to 60.8% from July's 70.2%, while direct bidders increased their take to 27.0%. This final auction followed a period of market volatility triggered a week prior by the Bessent Buyback Bluff.