Yesterday's two-year note auction was exceptionally strong, but today's five-year note sale fell short of expectations. The five-year auction, for $40 billion, priced at 4.393%, slightly lower than last month but slightly above the when-issued rate. This marked the fifteenth consecutive auction without a stop-through and the tenth in a row with a tail. The bid-to-cover ratio improved to 2.37, exceeding last month's figure and the recent average. Foreign buyers purchased 61.5% of the auction, an increase from last month but below the average. Direct bidders took 28.4%, the highest amount since January. Consequently, dealers were left holding only 10.0%, the lowest proportion since December. Overall, today's auction was considered solid but significantly weaker than yesterday's outstanding two-year sale. The market's muted reaction was evident in the continued rise of the ten-year yield and the broader curve.