Treasuries Remain Higher After $37 Billion Two-Year Auction
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Treasuries remained higher as the government sold $37 billion of two-year securities, the second of four note and bond auctions this week totaling $109 billion.
The auction drew a record low yield of 0.498 percent, compared with the 0.499 percent forecast in a Bloomberg News survey of 7 of the Federal Reserve’s 18 primary dealers. The sale’s bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered, was 3.12, compared with an average of 3.19 at the past 10 auctions. The two-year note yield dropped to an all-time low earlier after a report showed sales of existing homes tumbled in July.