US treasury sells $69 billion of two-year notes at a high yield of 3.786%

The U.S. Treasury sells $69 billion of two-year notes:

• High yield 3.786%
• WI level at the time of the auction 3.787%
• Tail-0.1 basis points versus six-month average of -0.3 basis points
• Bid-to-Cover 2.58X versus six-month average of 2.62X
• Directs 26.3% versus six six-month average of 17.6%
• Indirect 60.5% versus six-month average of 71.3%
• Dealers 13.2% versus six-month average of 11.1%

Auction Grade: C-

The domestic direct bidders were the bright spot, along with a modest tail of -0.1 basis points. However, international buyers were much less than the six-month average, and dealers were saddled with more than the six with the average. The bid to cover was close to the average

This article was written by Greg Michalowski at www.forexlive.com.