The US Treasury's 2-year note auction on Tuesday saw strong demand as the high yield dropped to 3.984%, down from 4.169% in the previous sale. The bid-to-cover ratio rose to 2.66.
Direct bidders took 13.6% of the $69 billion in accepted competitive bids. Indirect bidders, which often include foreign central banks, were awarded 75.8%, slightly below the prior 85.5%.
The note's when-issued (WI) yield heading into the auction was 3.987%, close to the final result.
