The US treasury sold $69 billion of 2 year notes at a high yield of 3.936%

• WI level at the time of the auction 3.918%
• Tail 1.8 basis points vs 6 month average of -0.2 basis points
• Bid to cover 2.44X vs 6 month average of 2.62X
• Directs 16.5% versus 6 month average of 32.1%
• Indirects 59.3% versus 6 month average of 57.2%
• Dealers 24.12% versus 6 month average of 10.7%

AUCTION GRADE: D-

It would take a failed auction to get an F grade but the D grade is pretty low relative to recent auctions. The only saving grace is the Indirect take of 59.3% which was higher than 57.2% but that may just because the directs were so weak at only 16.5%. Dealers were saddled with nearly 25%.

The 2 year yield is currently trading at 3.95% up 12.2 basis points. The 10 year yield is up 8.3 basis points at 4.419%. The recent high reached 4.44%.

This article was written by Greg Michalowski at investinglive.com.