AUCTION HISTORY: US to sell USD 69bln of 2-yr notes at 18:00GMT/13:00EST

The upcoming US auction of $69 billion in 2-year notes is significant as it reflects the current demand for short-term government debt.

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AUCTION HISTORY: US to sell USD 69bln of 2-yr notes at 18:00GMT/13:00EST

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US 2-YEAR NOTE AUCTION RECENT HISTORY:

  • High Yield: (prev. 3.499%, six-auction avg. 3.604%)
  • Tail: (prev. 0.2bps, six-auction avg. -0.3bps)
  • Bid-to-Cover: (prev. 2.54x, six-auction avg. 2.6x)
  • Dealers: (prev. 12.7%, six-auction avg. 11.2%)
  • Directs: (prev. 34.1%, six-auction avg. 33.0%)
  • Indirects: (prev. 53.2%, six-auction avg. 55.9%)
Context

Recent auction metrics indicate a slightly weaker bid-to-cover ratio compared to the six-auction average, which could point to reduced appetite among investors. Traders will be watching closely for the high yield and any tail to gauge sentiment and potential implications for yield curves and overall risk appetite in fixed-income markets.

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