US awards 24.7% of five-year notes to direct bidders
TL;DR
The U.S. Treasury allocated 24.7% of a $70 billion five-year note auction to direct bidders via Treasury Direct, reflecting strong investor confidence in U.S. debt as a safe-haven asset amid global uncertainty. The remaining 75.3% went to competitive bidders, with the notes maturing in 2031 and carrying a market-determined coupon rate.
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US awards 24.7% of five-year notes to direct bidders
U.S. Treasury Awards 24.7% of Five-Year Notes to Direct Bidders in February 2026 Auction
On February 25, 2026, the U.S. Treasury awarded 24.7% of its $70 billion five-year note auction to direct bidders, according to auction results. This allocation reflects the portion of the issue reserved for individual and institutional investors participating directly through Treasury Direct, bypassing traditional competitive bidding channels. The remaining 75.3% was awarded to competitive bidders, including primary dealers and other market participants.
The auction followed standard procedures, with noncompetitive bids accepted until 12:00 PM and competitive bids submitted by 1:00 PM. The notes, which mature on February 28, 2031, carry a fixed coupon rate determined by market demand during the auction. The Treasury Direct program facilitates direct access for investors, offering a streamlined process for purchasing securities without brokerage intermediaries.
Market analysts often monitor auction metrics such as bid-to-cover ratios to gauge investor demand. While the bid-to-cover ratio for this specific auction was not disclosed in available data, historical trends indicate that ratios for 10-year notes have remained relatively stable in recent years. A bid-to-cover ratio below average may signal weaker demand, but no significant concerns were noted in the broader Treasury market ahead of this auction.
The 24.7% allocation to direct bidders highlights continued strong participation in Treasury Direct, which accounts for a growing share of Treasury securities issuance. This trend underscores confidence in U.S. government debt as a safe-haven asset, particularly in an environment of elevated global uncertainty and persistent federal deficits.
Treasury notes remain a cornerstone of U.S. debt financing, with maturities between 2–10 years and semiannual interest payments. Investors purchasing through Treasury Direct receive guaranteed principal and interest payments, though secondary market prices may fluctuate based on economic conditions, inflation expectations, and Federal Reserve policy.
The next 5-year note auction is scheduled for March 2026, with results to be released following the standard monthly timeline.
Brookings Institution analysis of Treasury auction metrics: Brookings Institution analysis of Treasury auction metrics.
CME Group and U.S. Treasury Direct auction procedures and definitions: CME Group and U.S. Treasury Direct auction procedures and definitions.
