The U.S. Treasury’s latest 2-year note auction cleared at a 4.787% high yield on September 22, the highest auction yield for the maturity since May 2024, as the government sold $69 billion of new notes.
According to Treasury auction results, the new 2-year note carries a 4.75% coupon, will be issued on September 30, 2026, and matures on September 30, 2028. Its CUSIP is 91282CRP8.
The auction drew roughly $181.26 billion in public tenders against about $69.00 billion accepted, producing a 2.63 bid-to-cover ratio. That was slightly above the 2.60 ratio at the previous 2-year auction on August 25.
Among accepted competitive bids, indirect bidders received about 57.8%, while direct bidders received about 29.0% and primary dealers took roughly 13.2%.
Treasury’s indirect-bidder category includes customers submitting competitive bids through direct submitters, including but not limited to foreign and international monetary authorities, so it should not be treated simply as a measure of foreign demand.
The previous 2-year auction on August 25 cleared at 4.204%. Tuesday’s 4.787% result was therefore 0.583 percentage point, or 58.3 basis points, higher, based on an Investozora calculation from the two auction yields.
The historical comparison is notable. Treasury’s June 25, 2024 2-year auction cleared at 4.706%, while the May 28, 2024 auction produced a 4.917% high yield. That makes the September 2026 result the highest 2-year auction yield since May 2024.
For readers unfamiliar with competitive bidding, indirect bidders and bid-to-cover ratios, Investozora’s guide to the U.S. Treasury auction process explains how Treasury securities are allocated and how auction statistics should be read.
The higher clearing yield means Treasury must pay a higher rate on this new 2-year borrowing than on last month’s comparable issue. It also gives investors a current benchmark for the short end of the Treasury market ahead of the government’s remaining coupon auctions this week.
