The auction saw a high yield of 4.189%, with a tail of -0.3 basis points and a bid-to-cover ratio of 2.64X.
The US Treasury auctioned $69 billion of two-year notes at a high yield of 4.189%, slightly below the when-issued level of 4.192%. The auction resulted in a tail of -0.3 basis points, compared to a six-auction average of 0.1 basis points.
The bid-to-cover ratio stood at 2.64X, marginally above the average of 2.61X. Direct bidders took 34.3% of the notes, above the average of 29.1%, while indirect bidders accounted for 55.5%, slightly below the 57.8% average. Dealers absorbed 10.2%, down from the 13.0% average.
Two-year note auctions typically attract strong demand, and today’s results reflected steady participation despite minor deviations from recent averages.