US 2-year note auction results 3.874% vs 3.880% WI

• Prior was 4.434%
• On the run 2s were trading at 3.9245% shortly before the auction
• Bid to cover 2.68 vs 2.81 prior

That’s a strong auction and note that there has only been one tail at a regular 2-year auction in the past year. Even with much less yield than last month, the bidders were there. That bodes well for the 5s and 7s coming this week.

Over in the cash market, yields are down to 3.920%, which is the low of the day.

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