Investment funds buy $10.969 billion two-year note in June: U.S. Treasury

(Reuters) – Large investment managers bought $10.969 billion at a 2-year note auction held in June, compared with the $11.397 billion they purchased the previous month, data from the U.S. Treasury Department released on Monday showed.

Overseas investors, another major group of holders of U.S. government debt, bought $6.437 billion of the latest 2-year supply, compared with $6.068 billion they purchased the previous month, according to the Treasury Department’s auction allotment data.

The Treasury also sold some of $29 billion of 2-year notes earlier this month to banks, pension funds and Wall Street bond dealers.

At other auctions held the same week as the 2-year auction, large investment managers bought $18.061 billion of 5-year notes, compared with the $19.442 billion they purchased the previous month. They bought $15.957 billion in 7-year debt versus $16.160 billion the prior month.

Overseas investors bought $5.779 billion of the latest 5-year supply, compared with $5.454 billion they purchased the previous month.

They bought $3.972 billion of 7-year debt versus $4.931 billion the prior month.

The Treasury offered $38 billion in 5-year notes and $31 billion in 7-year debt.

At the Treasury’s monthly floating-rate note (FRN) auction, large money managers bought $3.916 billion of the $15 billion issued. Foreign investors purchased $2.100 billion of the latest 2-year FRN supply.

As for the month’s supply of Treasury Inflation-Protected Securities (TIPS), the Treasury offered $6 billion in 30-Year TIPS Bond of which investment funds bought $3.528 billion and foreign investors purchased $0.626 billion.