Bonds Extend Bid After Solid 2Y Auction Demand Sees Big ‘Stop Thru’

Treasury yields were already significantly lower this morning (along with crude oil prices) but the strong demand for 2Y Treasuries at this morning’s auction sent them even lower…

Source: Bloomberg

Bidders were evidently happy to scoop up “cheap” paper as the offering stopped at 4.274%, nearly 2 bps through the when-issued yield…

Source: Bloomberg

Demand was strong, with bid/cover of 2.77 the highest in four months and 1.3σ above the one-year average…

Source: Bloomberg

Indirects were enthusiastic buyers, with their 71.6% takedown some 1.2σ above average.

Source: Bloomberg

It appears the ‘Bessent’-effect already having an impact?