US 2-Year Treasury Auction Demand Weakens as Overseas Bid Share Hits Lowest Since November 2021
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Ahead of the Federal Reserve's FOMC decision, the U.S. Department of the Treasury completed a $69 billion 2-year Treasury note auction, with overall demand weak and the overseas bidder share hitting its lowest level since November 2021. The auction's high yield was 4.708%, 0.3 basis points above the when-issued yield before the auction, marking the largest tail deviation since March; the bid-to-cover ratio was 2.589, the lowest since March. The share of indirect bidders, representing overseas demand, was only 45.7%, down sharply from 57.8% in September; the share of direct bidders rose to 41.3%, a record high, while dealers took down 13.0%, roughly in line with recent levels.
AI-generated from reports · 9 hr agoUpdated
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- ZeroHedgeUS 2-Year Treasury Auction Cools Ahead of Fed Decision as Overseas Demand Slumps
Ahead of the Federal Reserve's FOMC decision, the US $69 billion 2-year Treasury auction saw weak demand, with a high yield of 4.708%, down slightly from 4.787% last month and 0.3 basis points higher than the pre-auction when-issued yield, marking the largest tail since March. The bid-to-cover ratio was 2.589, the lowest since March; indirect bids from overseas investors accounted for only 45.7%, down sharply from 57.8% in September and the lowest since November 2021. Direct bids rose to 41.3%, a record high, while dealer takedown was 13.0%, roughly in line with recent levels.
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