The WI is trading at 2.27% ahead of the auction
The U.S. Treasury will be want to of US$40 billion of two-year notes at 1300 ET/1700 GMT.
The current WI (when-issued) yield is trading at 2.27%.
The last auction was auctioned at a high yield of 2.503% (on Februeary 25th). Since then, the Fed has taken out the tightening bias in 2019, and yields moved sharply lower. The low yield yesterday moved to the lowest level since March 2018 (see chart below).
Other information from the last auction(s).
- Bid to cover (a measure of demand) came in at 2.5x. The last 6 auctions has come in at 2.52x
- Directs came in at 22.6%
- Indirects came in at 38.6%
