Treasury yields were already significantly lower this morning (along with crude oil prices) but the strong demand for 2Y Treasuries at this morning's auction sent them even lower...

Bidders were evidently happy to scoop up “cheap” paper as the offering stopped at 4.274%, nearly 2 bps through the when-issued yield...

Demand was strong, with bid/cover of 2.77 the highest in four months and 1.3σ above the one-year average...

Indirects were enthusiastic buyers, with their 71.6% takedown some 1.2σ above average.

It appears the 'Bessent'-effect already having an impact?

...is the 'Bessent'-effect already having an impact?
{ai:summary}Treasury yields fell further today, influenced by strong demand at the 2-year Treasury auction, which closed at 4.274%. The bid/cover ratio reached 2.77, marking the highest demand in four months.Indirect bidders showed notable enthusiasm, securing 71.6% of the offering, significantly above the average. This trend suggests a potential impact from recent market shifts. #economy

Bonds Extend Bid After Solid 2Y Auction Demand Sees Big 'Stop Thru'

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