US Treasury to auction $52B of 2 year notes at the top of the hour

The US treasury will auction off $52 billion or to year notes at the top of the hour. The six month averages of the recent components for that auction shows:

• bid to cover 2.56X
• DIrects (a measure of domestic demand), 17.7%
• Indirects (a measure of international demand), 56.1%
• Dealers (the dealers take the balance) 26.2%

The last auction at a high yield of 0.99% with a tail of -1.2 basis points. The current two-year is much higher at 1.535% as the expectations for Fed tightenings in 2022 increased.