Photo: AP Photo/Jason Redmond
$35 billion in two-year treasuries sold to fervent demand today, sending yields down to 0.249% from a 0.251% forecast.Bidders tendered nearly $132 billion in offers for the purchase — a level not seen since September 2010 — outstripping availability by more than 375%. The resilient purchasing soothed investors who worried that bondholders were tapped out from recent large scale sales.
Primary dealers, which include 20 of the largest banks like Cantor Fitzgerald, Goldman Sachs and Morgan Stanley, purchased about half of the total offering with $17.8 billion. Indirect bidders, accounting for foreign central banks, increased their share with $12.8 billion in two-year notes, leaving direct bidders with the remaining $4.2 billion.
On Wednesday and Thursday the Fed will auction another $64 billion in five and seven year notes.
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