US sells 2-year notes at 4.130% vs 4.122% WI

• Prior was 3.520%

This auction was earlier than usual today because the Treasury is also selling 5s at 1 pm ET. The glut of supply in a single day is much for the market to digest and in 15 of the past such instances, there have been 11 tails. We got the same today with a 0.8 bps tail.

I will be interested to see how the broader bond market performs after we get the 5s sale out of the way but we also get 7s and 3s this week, so the pressure won’t exactly stop. Plus, many market participants are inclined to be sidelined ahead of the election.

This article was written by Adam Button at www.forexlive.com.