Instead, the attention was on whether there would be any interest in the two-year auction.

The size of the two-year note auction was reduced by $750 million.

The high yield at the two-year auction was 6.27 percent.

The amount was the highest for a two-year note auction since January 1989.

On Tuesday, demand was also heavy at the two-year note auction.

With the two-year auction still fresh on everyone's mind, most dealers had expected the award to come in at 5.69 percent.

The market held its gains even after the results of the $18.75 billion two-year note auction came in weaker than expected.

It was the lowest average yield at a two-year note auction since June, 1977.

"I think market expectations of the two-year auction may have been too lofty, because 4.11 percent is not really bad."

Talk among traders ahead of the two-year auction indicated that they did not expect great demand.