I invariably do a double-take when auction sizes come up. Today it’s $66 billion in two-year notes in what I initially thought was a typo.
Bill Gross warned last week about too much supply, though he did advocate for buying 2s (vs 10s).
This is the first coupon auction since the Fed. Powell’s dovish bent should help but all that supply is leading to a concession with yields up 3-4 bps across the curve today. On-the-run 2s are trading at 4.63%.