Investing.com -- The US government sold $69 billion of 2-year notes on Tuesday at a lower-than-expected yield, on stronger demand ahead of the key inflation report due later this week.
The notes were awarded at 4.898%, above the pre-sale, or when-issue, rate of 4.904%. The lower-than-expected yield come as Treasuries, which trade inversely to yield, were under pressure on the day amid weaker-than-expected U.S. manufacturing and services data.
The auction comes ahead of PCE price index data - the Fed’s preferred inflation gauge - due Friday.
The bid to cover ratio, a measure demand, for the auction was 2.66, up from the 2.62 ratio in the previous auction.