2-year US Treasury auction weakens as $69B sale clears at 3.936% yield

A soft outcome in Tuesday's 2-year US Treasury auction suggested investors are growing less comfortable with the outlook as oil rises and inflation worries resurface. The Treasury sold $69 billion of 2-year notes at a 3.936% high yield, while the bid-to-cover ratio slipped to 2.44 from 2.63 in February. The results were read as a sign markets may be dialing back expectations for near-term Federal Reserve rate cuts.