I invariably do a double-take when public sale sizes come up. At present it is $66 billion in two-year notes in what I initially thought was a typo.
Invoice Gross warned final week about an excessive amount of provide, although he did advocate for getting 2s (vs 10s).
That is the primary coupon public sale for the reason that Fed. Powell’s dovish bent ought to assist however all that provide is resulting in a concession with yields up 3-4 bps throughout the curve at this time. On-the-run 2s are buying and selling at 4.63%.
