US Treasury Sells $69 Billion in 2-Year Notes

The United States Department of the Treasury auctioned $69 billion in 2-year notes on September 22, 2026. The sale was characterized as weak, with the high yield reaching 4.787%, the highest level since June 2024. This increase was driven by a recent rate hike and resulted in a 0.2 basis point tail against the when issued yield of 4.785%.

While the bid-to-cover ratio of 2.627 showed improvement over the previous month and recent averages, internal demand indicators remained soft. Indirect bidders decreased to 57.79% from 66.01%, falling below the six-auction average. As a result, primary dealers were required to absorb 13.2% of the auction, the highest dealer allocation since March.