US to sell fewest 2-year notes in nearly 7 years

NEW YORK: The US Treasury Department said on Thursday it will, as expected, sell $26 billion in two-year notes next Tuesday, which will be the smallest offering of this maturity since February 2008.

The US government's finance arm has reduced the auction sizes of two- and three-year notes for three straight months due to reduced short-term borrowing needs.

After the two-year note sale, the Treasury will sell $35 billion in five-year debt on Wednesday and $29 billion in seven-year securities on Thursday.

On the open market, the yield on two-year Treasuries last traded at 0.511 percent, up nearly 1 basis point from late on Wednesday.