it to cover ratio 3.22 vs 2.52 at the last auction

  • US awards 15.9% of two-year notes to direct bidders
  • US awards 25.8% 2-year notes to primary dealers
  • US awards 58.3% of two-year notes to indirect bidders
  • The bid to cover at 3.22 is the highest since September 2015
  • The yield is the highest since October 2008.

The higher yield has attracted strong demand. The 2 year auction yields have move up from 0.75% in September 2016. The low auction yield in 2017 was 1.21%.

Globally, 2.066% compare very favorably to:

  • Germany at 0.588%
  • UK 0.568%
  • Japan -0.14%
  • Italy -0.311%