US treasury auctions off $47 billion of two-year notes at a high yield of 2.519%

• High  yield  2.519%. The last auction high yield came in at 2.585%
• WI level at the time of the auction 2.526%
• Tail -0.7 basis points vs. six-month average of 0.0 basis points
• Bid to cover 2.61X vs six-month average of 2.59X
• Directs (a proxy for domestic demand) 22.09% vs six-month average of 17.8%
• Indirects (a proxy for international demand) 62.55% vs six-month average of 59.9%
• Dealers 15.35% vs six-month average of 22.3%

Auction Grade: A

The 2 year auction was met with strong demand from both domestic and international investors. The auction high yield was -0.7 basis points less than the WI level at the top of the auction. That compares favorably to the six-month average of 0.0 basis points. Dealers were left with a small 15.35% compared to the 22.3% average over the last 6 auctions.