While one may opine if today's 2 Year auction was weak or strong, one thing is indisputable: at a pricing high yield of 0.511% (even if 0.4 bps through the When Issued), this was the highest closing yield for 2 Year paper since May 2011 when it priced at 0.56% just before the US debt ceiling debacle and US downgrade firmly reset the bond market far lower. As for the other components of today's auction, the Bid To Cover came at 3.231, below the 3.519 from May, if just below the TTM average of 3.34. The internals were unimpressive, with Direct and Indirects splitting the post almost equally, getting just over 23% of the auction each, while Dealers were left holding 54.6% of the final allottment.
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In short: a passable auction that did the best it could under the conditions. Still, considering these notes mature just outside of the period when the Fed is supposed to start hiking rates, it appears the bond market isn't too worried about the FF rate hitting the 4.25% some Fed presidents put down on their dot plot.
