US treasury sells $69 billion in two year notes at a high yield of 4.169%

• High yield 4.169%
• WI level at the time of the auction 4.18%
• Bid to cover 2.56X vs six-month average of 2.66x
• Tail -1.1 basis points vs. six-month averages -0.3 basis points
• DIrects 7.64% vs six-month average of 18.3 basis points
• Indirects 85.49% versus six-month averages 68.9%
• Dealers 6.87% versus 6-month average of 12.8%

The auction was top-heavy with international demand. They took a whopping 85.49%, well above the 68.9% six-month average. Dealers were left with a low 6.87%. The domestic buyers were squeezed out and only got 7.64%.

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