U.S. Treasury debt prices edged higher on Monday after the Treasury’s auction of two-year notes saw strong demand, but low volume and a lack of market-moving economic data capped gains.
Overall bidding, measured by the bid-to-cover ratio, came in at 3.71 in the Treasury’s sale of $28 billion in two-year notes. That marked the highest level since December and helped push benchmark and 30-year Treasury yields, which move inversely to prices, to one-week lows.
“It’s certainly very difficult to interpret it as a hawkish vote on Fed policy,” said Ian Lyngen, senior government bond strategist at CRT Capital in Stamford, Connecticut, on the strong bidding at Monday’s auction.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all.Â You could lose all of your deposited funds.