The US Treasury successfully auctioned $69 billion in 2-year notes, a key event following recent market volatility. The auction stopped through the when-issued yield by 0.4 basis points, indicating strong demand at a price of 4.204%. This yield represented a notable decrease from the previous month, reflecting eased expectations for further interest rate hikes. The bid-to-cover ratio was 2.599, which was below recent averages, suggesting less aggressive bidding from some participants. However, indirect bidders, primarily foreign buyers, secured a significant 66.0% of the auction, the highest since March 2025. Conversely, direct bidders' allocation dropped to 23.09%, a low not seen since March. Dealers were left with a smaller portion, 10.9%, marking their second-lowest take since February. Despite prior market turbulence, the auction's outcome was overwhelmingly positive. This performance suggests the bond market has stabilized and foreign investor confidence remains robust. The strong foreign buying in particular was a highlight of the auction.