We classified last month’s 2Y auction as “lacklustre.” This month, the best word to describe today’s sale of $26 billion in 2Y paper is “dreadful.”
While the yield on the auction was almost unchanged from last month, coming at 0.760%, it tailed by 1.2bps to the 0.748% When Issued, compared to last month which came on the screws at 0.745%. This was the biggest tail for this maturity going back over a year.