Treasury’s $51 billion auction of 2-year notes comes in as expected, trader says

A $51 billion sale of 2-year Treasury notes produced average results, helping to ease fears about supply-demand imbalances in the government-debt market. “It wasn’t a strong auction and it wasn’t a weak auction, it was spot-on,” according to Tom di Galoma, co-head of global rates trading for BTIG in New York. Tuesday afternoon’s sale came almost a week after Treasury’s $13 billion auction of 20-year government bonds on Oct. 18, which was stronger than expected. Ahead of Tuesday’s 2-year auction, Treasury yields were little changed to slightly higher.