US Treasury's 2-Year Note Auction Highlights

The recent US Treasury's 2-year note auction on Tuesday showcased strong demand, with the high yield decreasing to 3.984%, a notable drop from the previous sale's 4.169%. The bid-to-cover ratio also saw an increase, reaching 2.66.

Distribution of Bids

Out of the $69 billion in accepted competitive bids, direct bidders accounted for 13.6%. Meanwhile, indirect bidders, which frequently include foreign central banks, were allocated 75.8%, a slight decrease from the prior 85.5%.

Yield Expectations Met

The when-issued (WI) yield prior to the auction was 3.987%, closely aligning with the final auction result, indicating market expectations were accurately met.