Amid pressure on FRED, two-year debt sales are strong amid pressure to reduce interest rates
The sale of US government debt, which expires in two years, has shown strong acceptance as rhetoric grew due to the Federal Reserve interest cuts.
The Ministry of Finance sold its two-year debt at 3.920%. This was a 0.006% lower yield than the pre-harvest deadline. Lower yields refer to the successful Treasury sales and are known as stops.
Part of the demand comes from investors who expect the Fed to cut interest rates in the coming months. Rate reduction retains the ability to reduce yields over two years, making current yields more attractive.