US treasury sells 40 billion of two-year notes
- high yield 1.612%. That is 1 basis point below WI level of 1.622%
- bid to cover 2.64x vs 2.60x last
- Directs 15.9% versus 20.4% at the last auction
- Indirects 57.0% versus 47.1% at the last auction
- Dealers take 27.1% of the auction versus 33.6% at the last auction
It's a good auction with the yield 1 basis point lower than the WI yield at the auction time. The Bid to cover at 2.64x was the highest since 2.75x at the May auction.
On a day where there are flight to safety flows (stocks down, gold up, oil lower, impeachment fears), buying treasuries are a safe haven. That is what the auction results imply.