US sells $68 billion of 2-year notes at 1 PM

The US treasury will show $68 billion of 2-year notes at 1 PM ET. The 2-year note auction is the first of three coupon auctions this week. The treasury will auction five and seven-year notes on Tuesday and Wednesday respectively before the Thanksgiving holiday on Thursday.

Last week the US treasury auctioned off 20-year bonds. That auction was poor with a three basis point tail which was well above the six-month average. The dealers were left with some 22% of the auction amount.

The six-month averages of the major components for the two-year note shows:

• Bid to cover 2.62X
• Tail -0.2 bps
• Directs (domestic demand), 20.6%
• Indirects (international demand) 65.8%
• Dealers: 13.6%

This article was written by Greg Michalowski at www.forexlive.com.