US Treasury Sells $69 Billion in Two-Year Notes at 4.708% High Yield

The US Department of the Treasury auctioned $69 billion in two-year notes at a high yield of 4.708%, attracting slightly below-average demand. The sale tailed by 0.3 basis points above the when-issued level of 4.705%, generating a bid-to-cover ratio of 2.59X compared to the historical average of 2.64X and a 10-auction average of 2.62. The previous month's identical offering drew a higher yield of 4.787% and a 2.63 bid-to-cover ratio. Indirect bidders took 45.68%, direct bidders took 41.32%, and primary dealers were left with 13.0%.