US 2-Year Treasury Auction Yield Hits Highest Since May 2024
📈 The US Treasury sold $69 billion of 2-year notes at a high yield of 4.787%, up sharply from 4.204% in the August auction. The result reflects continued pressure at the front end of the curve following the Fed’s recent rate hike.
📊 Demand remained sufficient to absorb the supply, with the bid-to-cover ratio at 2.63x, slightly above the six-month average. However, a 0.2 bp tail, slightly weaker indirect demand and a higher dealer allocation suggest buyers were somewhat more cautious at current levels.
🔎 The auction therefore looked modestly softer than normal rather than stressed. Attention now shifts to today’s $70 billion 5-year Treasury auction, which could provide a clearer signal on whether supply pressure is spreading further across the yield curve.
#USBonds $SOL
📈 The US Treasury sold $69 billion of 2-year notes at a high yield of 4.787%, up sharply from 4.204% in the August auction. The result reflects continued pressure at the front end of the curve following the Fed’s recent rate hike.
📊 Demand remained sufficient to absorb the supply, with the bid-to-cover ratio at 2.63x, slightly above the six-month average. However, a 0.2 bp tail, slightly weaker indirect demand and a higher dealer allocation suggest buyers were somewhat more cautious at current levels.
🔎 The auction therefore looked modestly softer than normal rather than stressed. Attention now shifts to today’s $70 billion 5-year Treasury auction, which could provide a clearer signal on whether supply pressure is spreading further across the yield curve.
#USBonds $SOL
