<div id="readability-page-1" class="page"><div><p>With Treasury yields sliding 4 days in a row, today's 2Y auction was not seen as especially concerning (certainly not as much as a week ago, when the 10Y was knocking on 4.70%'s door, vs 4.50% where it trades today). Still, while the auction did have it strong sides, it was hardly stellar.</p><p>Starting at the top, the $69BN sale of 2Y paper priced at a high yield of 4.071%, up 26bps from 3.812% a month ago, and the highest since Feb 2025. The auction also priced on the screws with the When Issued 4.071%, following three straight tailing auctions, so a modest improvement there.</p><p><img width="500" height="249" src="https://imageproxy.pbkrs.com/https://files.zhedge.com/cdn-cgi/image/width=1920,quality=75,format=auto/https://assets.zerohedge.com/s3fs-public/inline-images/2Y%20screws.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://files.zhedge.com/cdn-cgi/image/width=1920,quality=75,format=auto/https://assets.zerohedge.com/s3fs-public/inline-images/2Y%20screws.jpg"/></p><p>The bid to cover was 2.640, which was down modestly from 2.653 a month ago, but above the 2.62 six-auction average.</p><p>The internals were in line: Indirects (aka foreign buyers) took down 57.6%, up from 56.48% a month ago but below the 57.9% recent average; and with Directs almost flat at 30.1% (down from 31.65% in April, and above the 29.3% recent average), Dealerswere left holding 12.30%, up from 11.87% a month ago and just below the 6-auction average of 12.84%.</p><p><img width="500" height="304" src="https://imageproxy.pbkrs.com/https://files.zhedge.com/cdn-cgi/image/width=1920,quality=75,format=auto/https://assets.zerohedge.com/s3fs-public/inline-images/2%20Year%20May%202026.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://files.zhedge.com/cdn-cgi/image/width=1920,quality=75,format=auto/https://assets.zerohedge.com/s3fs-public/inline-images/2%20Year%20May%202026.jpg"/></p><p>Overall, this was a forgettable auction with mediocre stats and internals. Then again, with the market trading treasuries and oil as one asset class today (while stocks do their own thing again), and sending sharply much lower on <strong>hopes that this time the Iran deal is definitely imminent (unlike all the previous times), </strong>it's not like anyone was paying attention to bond market internals today... or frankly anything else for that matter.</p></div></div>

SGOV

MINT

<p>Today's 2Y Treasury auction saw a high yield of 4.071%, the highest since February 2025, reflecting a 26bps increase from last month. The $69BN sale had a bid-to-cover ratio of 2.640, slightly below last month's 2.653. Indirect bidders accounted for 57.6% of the auction, while Directs were at 30.1%. Overall, the auction was deemed mediocre with unimpressive stats and internals, overshadowed by market focus on treasuries and oil amid hopes for an imminent Iran deal.</p>

Mediocre 2Y Auction Prices At Highest Yield Since Feb 2025