The U.S. Treasury will auction $69 billion in 2-year notes at the bottom of the hour. The timing and day of the auction are unusual, prompted by the upcoming FOMC rate decision on Wednesday. As a rule, the Treasury does not hold coupon auctions on days when the Federal Reserve announces policy decisions.
To accommodate this, the Treasury is frontloading both the 2-year and 5-year note auctions today. The 5-year note auction is scheduled for 1:00 PM ET.
The six-month averages of the major components of the two-year issue shows:
- Tail -0.3 basis points
- Bid to cover 2.59X
- Directs (domestic buyers) 20.8%
- Indirects (international buyers) 67.7%
- Dealers 11.4%
This article was written by Greg Michalowski at investinglive.com.
