Treasury sells $69B in 2-year notes

Auction Analysis - The auction of 69 billion USD in two-year notes was slightly below average, with a yield of 3.571% [1] - Demand for the two-year auction was weak, receiving a grade of C minus [1] - The bid to cover ratio was the weakest since the fall of last year, and all metrics were below 10 auction averages [1] - Dealers took a slightly larger portion than usual in the auction [1] Market Factors - Recent auctions in the past four to five weeks have shown solid demand, receiving grades of A's and B's [2] - The Federal Reserve's quarter-point easing has potentially impacted auction demand [2] - Debates surrounding stagflation and whether inflation will reach the 2% goal are influencing investor behavior [2][3] Upcoming Auctions - A 70 billion USD five-year auction is scheduled for tomorrow, followed by a seven-year auction [3] - Investor demand, both domestically and globally, will continue to be monitored [3]