The US treasury auctions off $45 billion of two-year notes at a high yield of 3.015%

The US treasury auctioned off $45 billion of of two-year notes at a high yield of 3.015%

• WI level at the time of auction 3.021%
• tail -0.6 basis points vs. six-month average of -0.4 basis points
• bid to cover 2.58X vs. six-month average of 2.63X
• dealers 17.95% vs. six-month average 18.5%
• directs 20.01% vs. six-month average 20.4%
• indirects 62.04% vs six-month average 61.1%

Auction grade: B

The 2 year note auction was a little better than average. There was a negative tail -0.6 basis points which was better than the six-month average. The bid to cover was a little bit worse than the six-month average. Directs (domestic demand) was a little less than the average while indirects (international demand) was a little bit more. Dealer participation was a little less than average which is indicative of the slightly better demand.

Overall, the grade wasn't an A but it was better than a C.

/inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term