Impact of Upcoming $66 Billion Auction on US 2-Year Notes: Insight and Analysis

Monday, 25 March 2024, 16:55

The US is preparing to sell $66 billion in two-year notes, prompting concerns about oversupply. Renowned investor Bill Gross's caution about excess supply contrasts with the Fed Chairman Powell's dovish stance. The auction reflects a delicate balance as yields rise amidst growing demand, with implications for investors on whether to favor 2s over 10s.
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Impact of Upcoming $66 Billion Auction on US 2-Year Notes: Insight and Analysis

The US Auction of 2-Year Notes: What You Need to Know

In a surprising move, the US government is set to sell $66 billion in two-year notes, which has sparked a debate among investors about the potential impact on yields.

Renowned investor Bill Gross recently sounded a warning regarding the possible consequences of oversupply in the market, providing insights that are crucial for understanding the upcoming auction.

Chairman Powell's dovish stance is expected to influence market dynamics, but concerns persist as the auction approaches, with on-the-run 2s already trading at 4.63%.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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