Treasuries Advance as Record US Auction Lures Solid Buyer Demand
- US government sold peak-size $69 billion of two-year notes
- Wall Street was watching the sale as yields floated near 5%
The US Treasury building in Washington, DC.
Photographer: Nathan Howard/BloombergThis article is for subscribers only.
US government debt advanced on Tuesday as the Treasury’s hefty $69 billion sale of two-year notes lured solid buyer demand — even as a much-desired 5% coupon proved elusive.
The sale of two-year Treasuries was awarded at 4.898%, slightly lower than the 4.904% yield in pre-auction trading at the 1 p.m. New York time bidding deadline — a sign that demand outstripped expectations. The world’s biggest bond market still has to absorb two more reams of supply this week, though — $70 billion of five-year notes on Wednesday and $44 billion of seven-year notes the following day.