Indirect Bidders Take Lowest Share Since 2021 at $69 Billion Auction

The U.S. Department of the Treasury sold $69 billion in two-year notes in an auction where indirect bidders took 45.7% of the awards, the lowest share since November 2021. Direct bidders received a record 41.3%, up from 29% in September.

Indirect bidders’ share fell from 57.8% in September. Dealers received 13% of the notes, roughly in line with recent auctions.

The auction’s high yield was 4.708%, below September’s 4.787%, which was the highest since June 2024. The latest yield was 0.3 basis point above the 4.705% when-issued yield, the largest tail since March.

The bid-to-cover ratio fell to 2.589 from 2.627 in September, its lowest reading since March.

The Federal Reserve is scheduled to announce its policy decision at 2 p.m. ET Wednesday, Oct. 28, followed by a news conference at 2:30 p.m. ET.