The U.S. Treasury raised a combined $139 billion this week through its regular 2- and 5-year note auctions, attracting robust demand for shorter maturities while longer-dated debt met a more measured reception as investors weighed the outlook for Federal Reserve policy. Tuesday’s $69 billion sale of two-year notes stopped 1.5 basis points through the 3.656% when-issued yield, setting a high yield of 3.641%. The bid-to-cover ratio improved to 2.69 from July’s 2.62, and indirect bidders—often a proxy for foreign central banks—took roughly 57% of the offering. Primary dealers were left with just under 10%, underscoring the breadth of demand for the front end of the curve. Demand moderated at Wednesday’s $70 billion auction of five-year notes, which tailed by 0.7 basis point versus the 3.717% when-issued yield to price at 3.724%. The bid-to-cover ratio edged up to 2.36 from the prior month’s 2.31 but remained below the two-year result. Direct bidders absorbed the bulk of the allotment, while primary dealers accepted about 7%, indicating investors were somewhat more selective further out the curve. Separately, the Mortgage Bankers Association reported that overall U.S. mortgage applications slipped 0.5% in the week ended Aug. 22, following a 1.4% decline the previous week. The average contract rate for a 30-year fixed loan inched up to 6.69%, the highest in a month. Purchase applications rose 2.2%, but a 3.5% drop in refinancing activity kept the headline index in negative territory, suggesting higher borrowing costs continue to cool housing-market momentum.