Yield on the sale slightly below expectations
The US Treasury sold $41 billion in 5-year notes at 2.065%. That's slightly lower than 2.067% in the WI market ahead of the sale.
However it's much lower than effective Fed funds at 2.38% and the lower band of the Fed's target at 2.25%.
The yield curve is inverted and that's the kind of signal you ignore at your peril.
