The U.S. Treasury sold $69 billion of two-year notes at a high yield of
- WI level at the time of the auction 4.192%
- Tail -0.3 basis points versus six auction average of 0.1 basis points
- Bid to cover ratio 2.64Xversus average of 2.61X
- Directs 34.3% versus average of 29.1%
- Indirects 55.5% versus average of 57.8%
- Dealers 10.2% vs average of 13.0%
AUCTION GRADE: B+
The two year is typically a well received auction with lots of demand. Today’s auction was certainly better-than-average thanks to strong demand from domestic US buyers.
Today’s auction came in the tail of -0.3 basis points. The bid to cover was near the average that the domestic demand was strong and 34.3% will have a six month average while the international demand was just below the norm. Because of domestic demand, the dealers were left with less than the average.
