US treasury auctions off $47 billion of two-year notes at a high yield of 2.519%

• High yield Yield A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as Read this Term 2.519%. The last auction high yield came in at 2.585%
• WI level at the time of the auction 2.526%
• Tail -0.7 basis points vs. six-month average of 0.0 basis points
• Bid to cover 2.61X vs six-month average of 2.59X
• Directs (a proxy for domestic demand) 22.09% vs six-month average of 17.8%
• Indirects (a proxy for international demand) 62.55% vs six-month average of 59.9%
• Dealers 15.35% vs six-month average of 22.3%

Auction Grade: A

The 2 year auction was met with strong demand from both domestic and international investors. The auction high yield was -0.7 basis points less than the WI level at the top of the auction. That compares favorably to the six-month average of 0.0 basis points. Dealers were left with a small 15.35% compared to the 22.3% average over the last 6 auctions.