Still buying those 2-years...

The government just finished selling $20 billlion in 2-year Treasury Notes. The auction was pretty strong by any measure. Yields came in slightly below expectations, for one thing. For another, the bid-to-cover ratio surged to 2.91. This shows how many dollars worth of bids were received vs. how many dollars worth of notes were being sold. We haven't seen a bid-to-cover ratio this high since November 2000. Interestingly enough, though, Treasury yields and prices barely budged after the sale. It doesn't look like anyone wants to place big bets ahead of the Fed meeting, which is underway now and will conclude tomorrow.