Bonds
Two-Year Treasuries See Record Investor Demand at Auction
- Primary dealers awarded 9%, their smallest share on record
- Auction yield more than 2 basis points lower than anticipated
The US Department of Treasury in Washington, DC.
Photographer: Mandel Ngan/AFP/Getty ImagesThis article is for subscribers only.
Investors flocked to the US Treasury’s monthly sale of two-year notes in a powerful demonstration of faith in Federal Reserve interest-rate cuts beginning this year.
Among the three main categories of bidders for the auction, the two that comprise investors were awarded a combined 91%, the most ever in data going back to 2003. Primary dealers, the third category, were awarded the remaining 9%, a record low.