$35 billion in five-year treasuries sold today sending yields down to a record low of 1.015%, mirroring yesterday’s frenetic auction.Bidders tendered nearly $107 billion in offers for the purchase, outstripping availability by more than 300%. Purchasers placed bids for yields as low as 0.870%, reinforcing the strong demand for the risk free instrument.
Indirect bidders, including international monetary authorities, increased their positions by $16.0 billion or 45.9% of the five-year auction, up from 36.6% of two-year notes sold yesterday. Primary dealers like Goldman Sachs and Morgan Stanley took in $14.1 billion from the auction, while direct bidders received the remaining $4.8 billion.
Yesterday, bidders snapped up $35 billion in two-year treasuries, pushing yields down to 0.249%. Though that’s not a record, it’s one of the lowest rates seen for the bills. Offers came in over $100 billion more than notes available, with primary dealers picking up more than half of the auction.
Tomorrow the Treasury will hold its last big auction of the week with $29 billion in seven year notes up for sale.
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