NEW YORK, July 28 (Reuters) - The yield on U.S. two-year Treasuries notes rose to its highest in 2-1/2 weeks early Monday afternoon after weak results at a $29 billion auction of new two-year notes, part of this week’s $93 billion in fixed-rate debt government debt supply.
The U.S. Treasury Department sold the latest two-year issue at a yield of 0.544 percent, the highest since May 2011.
Another aspect of the auction was the below-average purchases by investors, resulting in Wall Street dealers buying 58.7 percent of the supply, their biggest share since May 2013.
The two-year Treasuries yield last traded at 0.508 percent, up 1.6 basis points from late on Friday, while the yield on three-year notes rose more than 2 basis points at 0.996 percent. (Reporting by Richard Leong; Editing by James Dalgleish)