U.S. Two-Year Floating Rate Note Yields 0.016% at $15B Auction

The video discusses the bid-to-cover ratio and its implications on auctions, with a focus on the upcoming five-year auction and FOMC minutes. Guest Ira Jersey provides insights into market repricing due to increased supply, particularly in the front end, and the resulting yield curve dynamics. The discussion also covers the Fed's thought process during market volatility and expectations for future rate hikes, highlighting the potential for a flatter yield curve.

What was the bid to cover ratio in the recent auction compared to the previous one?

• Lower at 2.75

• Higher at 4.00

• Higher at 3.50

• Same at 3.38

What is the expected impact of increased supply of two-year and three-year notes?

• Lower yields and a flatter yield curve

• Lower yields and a steeper yield curve

• Higher yields and a flatter yield curve

• Higher yields and a steeper yield curve

What is the Fed's expectation regarding the yield curve?

• A steeper yield curve across all maturities

• No change in the yield curve

• A flatter yield curve with higher yields

• A steeper yield curve only for two-year notes

How many rate hikes are expected by the Fed this year?

• One

• Four

• Three

• Two

What is the market's current pricing for rate hikes in 2019?

• Two hikes

• One hike

• Three hikes

• No hikes