Two-year Note Auction Sees Strong Demand From Foreign Investors

An auction of $26 billion in two-year notes saw strong demand from foreign investors Tuesday, as indirect investors, a group that includes foreign central banks, took home 48.2% of the newly issued bonds. Foreign investors take home about 36% of new two-years at auction. The bond's yield at auction was 0.603%, 0.2 basis point lower than the two-year yield in the minute before the auction. Treasurys strengthened further after the auction, with the two-year yield down 5.3 basis points on the day at 0.561%.