Short-term Treasury bonds continued to rise after the 2-year bond auction.

The bid yield for the 690 billion US dollars 2-year US Treasury notes was one basis point lower than the pre-issuance trading level, and short-term bonds continued to rise after the issuance results were announced. The benchmark 2-year Treasury yield remains about 2 basis points lower than last Friday's closing price. Bid indicators also performed steadily, with primary dealers only receiving a 10.5% allocation, while direct bidders received a larger allocation. Bid data was solid, with primary dealers receiving a 10.5% allocation, lower than the recent average of 10.9%. Direct bidders received a 26.2% allocation, much higher than the recent average of 16.4%. Indirect bidders received a 63.3% allocation, compared to a recent average of 72.7%. The bid-to-cover ratio was 2.57 times, slightly lower than the six-time average of 2.65, and lower than the 2.52 times bid-to-cover ratio in the April auction. This week's Treasury auction is expected to benefit from potential end-of-month demand, with 5-year and 7-year Treasury notes being auctioned on Wednesday and Thursday.