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Review 2Y Note Auction: Modest Tail,  Weak Overall Stats

US TSYS/SUPPLY

The $50B 2Y Note auction tails by 1bp, with high yield of 2.365% vs when-issued yield of 2.355%. That's the biggest tail for a 2Y sale since November 2021, with the peripheral stats corroborating a fairly weak story for this auction.

  • Bid-to-cover ratio (2.46x) was the lowest since November 2021, while dealers took up 19.4% of the offering (up from 15.7% prior but down from the 24.3% 5-auction average coming into today).
  • Yields ticked higher in line with the tail, with attention moving swiftly to the 5Y sale in just over an hour (1300ET).

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