The U.S. Treasury Department auctioned $69 billion in two-year notes, with the awarded yield at 3.455%. This was slightly higher than the 3.454% yield seen in pre-auction trading at the 1 p.m. Eastern Time deadline, but it still marked the lowest yield since August 2022. The short end of the yield curve showed a muted reaction to the result, with yields for the maturity rising more than 2 basis points on the day. The 2s10s yield spread flattened by approximately 1.5 basis points.

Primary dealers were allotted 9.8% of the issuance, an increase from previous auctions. Indirect bidders received 55.9%, a decrease, while direct bidders were allotted 34.2%, one of the highest levels on record.

The bid-to-cover ratio was 2.63, matching the average of the previous six auctions.