hello
there are two bits you can use, a v bit 491064 or brad point 494066. they will both drill very clean holes. I used to make closet packs and have drilled a bizilion holes before the automatic machines came along. the v points are better for thru holes and the brad point for blind holes. on the thinner woods like 5/8 or 1/2 the v point depths have to be calibrated very close or the pins may not seat all the way in, and/ or you run the risk of blowing thru the backside if your wood thickness's vary a little,use the brad point on thinner woods.
If you clamp two panels together you can drill both at the same time saving some time. (presuming you won't see one side or need a center panel with holes on both sides.
when thru boring on delicate materials for 2 sided holes use a spoilboard behind the back side to help prevent chip blowouts/tears.
5mm is more common today as it makes smaller more unobtrusive holes. also you can use the euro 5mm screws for the hinges and drawer guides in the holes if you plan it out.
another tip if your doing plywood is to plunge each hole twice, the second time seams to clean up the hole and after you stain/finish the panel you don't seem to have to use pliers and fight the pins into the holes if it swells a little.