Forex News

US treasury auctions off $42 billion of two-year notes at a high yield of 4.46%

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The US treasury auctioned off $42 billion of two-year notes:

  • High yield 4.46%
  • WI level at the time of the auction 4.448%
  • Tail 1.2 BP vs six-month average of 0.2 basis points
  • Bid to cover 2.59X vs. six-month average of 2.57X
  • Directs 25.28%vs six-month average of 21.8%
  • Indirects 50.51% vs six-month average of 59.1%
  • Dealers 24.21% vs six-month average of 19.0%


  • The domestic (direct) demand was strong at the high yield
  • Internation demand was weak
  • Dealers were forced to take more of the auction as a result of the slack international demad.
  • Bid to cover was not bad
  • Tail was higher than the average

Why are international traders not excited? Could it be the thought that the dollar has topped? If there are currency loses ahead, that digs into the interest rate carry gains.