Auction History: US to sell USD 69bln of 2-year notes at 18:00GMT/13:00EST

The upcoming auction of USD 69 billion in 2-year notes presents key market interest.

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Auction History: US to sell USD 69bln of 2-year notes at 18:00GMT/13:00EST

US sells 6-week bills at high rate 3.635%; B/C 2.82x

European Closes: Euro Stoxx 50 +0.10% at 6,121, Dax 40 +0.12% at 25,022, FTSE 100 -0.04% at 10,681, CAC 40 +0.26% at 8,519, FTSE MIB -0.10% at 46,652, IBEX 35 -0.54% at 18,190, PSI +0.25% at 9,269, SMI +1.08% at 13,994, AEX +0.34% at 1,020

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US 2-YEAR NOTE AUCTION RECENT HISTORY:

  • High Yield: (prev. 3.580%, six-auction avg. 3.547%)
  • Tail: (prev. -1.4bps, six-auction avg. -0.5bps)
  • Bid-to-Cover: (prev. 2.75x, six-auction avg. 2.63x)
  • Dealers: (prev. 7.3%, six-auction avg. 10.7%)
  • Directs: (prev. 28.3%, six-auction avg. 32.0%)
  • Indirects: (prev. 64.4%, six-auction avg. 57.4%)
Context

The recent history shows a strong bid-to-cover ratio and increasing indirect bidding, indicating healthy demand, which could impact yields and influence rate expectations. Given the overall auction data, watch for any significant shifts from the averages, as this could signal changing appetite for short-term debt amid evolving economic conditions.

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