US sells USD 30bln of 2-year FRN; high discount margin 0.099%

• High discount margin 0.099% (prev. 0.139%).
• Bid-to-cover: 3.16x (prev. 3.75x).
• Dealers: 34.3% (prev. 30.0%).
• Directs: 0.0% (prev. 0.7%).
• Indirects: 65.7% (prev. 69.3%).

The auction results for the USD 30 billion 2-year FRN indicate weaker demand, as the bid-to-cover ratio has fallen significantly, suggesting less appetite from investors compared to the previous auction. The high discount margin has also decreased, which could imply a more cautious rate outlook. Overall, these results may suggest a shift in market sentiment regarding short-term debt, potentially influencing interest rates and risk perception going forward.