US Treasury sells $70B 5-year notes at higher-than-expected yield as demand cools

Investing.com -- The U.S. government sold $70 billion of 5-year notes on Tuesday at a higher-than-expected yield as demand eased slightly amid ongoing expectations for the Federal Reserve to keep rates higher for longer. 

The notes were awarded at 4.553%, above below the pre-sale, or when-issue, rate of 4.540%, but below the 4.659% high seen in the prior auction. 

In a sign of a slight easing in demand, the bid to cover ratio for the auction fell to 2.30 from 2.39 seen in the prior auction. 

The yield on the 5-year Treasury rose to 4.968% following the results, near the day's high of 4.97%