Today is a memorable day for bond traders: for the first time in years, there were two auctions within 2 hours of each other which came in... inverted.
Following the earlier 2Y auction which as we reported came in surprisingly weak on the Indirect side, with foreign buyers tumbling, at 1pm the Treasury sold $41 billion in 5Y notes in a relatively strong auction.
Yield - % - Issued - % - Bps
The high yield of 2.489% stopped through the When Issued of 2.491% by 0.2 bps and was the lowest since January 2019; However, what was remarkable is that the 5Y yield came in lower than the 2Y yield auction which concluded earlier, and which as we noted at the time, stopped at 2.503%, or more than 1 basis point of inversion.
The internals were less exciting, with the Bid to...