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Friday, March 29, 2024

No Shortage Of Demand For Largest Ever 2Y Treasury Auction

Courtesy of ZeroHedge View original post here.

One month after the Treasury sold 2Y notes at an all time low yield of 0.176%, a time when the market was concerned with negative yields hitting as soon as November, moments ago the US Treasury sold a record $46BN in 2Y notes in a generally strong auction.

Starting at the top, today's auction priced at a yield of 0.193%, stopping through the When Issued 0.197% by 0.4bps, and while it was fractionally above last month's record low 2Y stop of 0.176% this was still the second lowest amount the US government has paid to borrow for 2 years.

The bid to cover was not quite as good, sliding for a 3rd consecutive month from 2.683 last month to 2.458, the lowest since March, and a far cry from the 3.102 in April.

The internals were solid, with Indirects taking down 52.0%, which while below last month's 53.1% was above the recent 6 auction average of 50.9%. And with Directs taking another 16.8%, just slightly above last month's 14.8%, Dealers were left holding to 31.2%.

Overall, a solid 2Y auction pricing at the second lowest yield on record as there was clearly no shortage of buyers for the biggest 2Y offering on record.

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