U.S. Treasury's $69.7 Billion 2-Year Note Auction Achieves 4.335% Yield With Record 82.1% Foreign Demand

Dec 23, 2024, 05:45 PM

The U.S. Treasury's auction of $69.7 billion in 2-year notes on December 23, 2024, was met with robust demand, highlighted by a high yield of 4.335% and a bid-to-cover ratio of 2.73. This auction saw a record level of foreign demand, with the indirect bid, a proxy for international purchasing, reaching 82.1%, the highest on record. The auction's success comes amidst a backdrop of rising U.S. Treasury yields, with the 2-year yield increasing by 81 basis points since the Federal Reserve began cutting rates in September. The strong demand for the 2-year notes suggests confidence in U.S. securities despite recent market volatility.