Weak U.S. Note Sale Leaves Fed’s Dealers Biggest Share
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The U.S. sold $32 billion of two-year notes at a higher-than-forecast yield, leaving the Federal Reserve’s primary dealers, which are obliged to bid in Treasury sales, with their biggest share of the auction in almost a year.
The notes yielded 0.447 percent at yesterday’s sale, the second-highest level since the May 2011 monthly auction drew 0.56 percent. The average forecast of seven of the 22 primary dealers in a Bloomberg poll was 0.442 percent. Primary dealers bought 57.7 percent of the securities, the most since May 2013.