Treasury's 5-Year Auction Hits 20-Year Yield High: What This Means for Bitcoin

The US Treasury paid its highest yield on a 5-year note since June 2006, a sign that demand for government debt is weakening even as yields stay elevated across the board. Rising yields raise borrowing costs across the economy.

They also tend to pressure stocks, bonds, and other risk assets as investors demand more compensation for holding debt. Rising Yield, Dropping Interest Wednesday’s $70 billion auction priced at 5.033%, above the 5.002% when-issued level, according to Dow Jones.

That is up from 4.393% at the prior sale in August. The bid-to-cover ratio measures how many bids came in for each note sold. It fell to 2.212, the lowest since December 2018. Indirect bidders, a group that includes foreign central banks, took just 54.3% of the sale.

That is down from 61.5% at the last auction and the lowest share since March 2020. Yields Are Rising Across the Curve The pressure was not limited to 5-year debt.