Investors have flocked to two-year Treasury issues in a sign that the market believes the Federal Reserve will start cutting interest rates this year. The $69 billion placement is in line with historical records, with win the bidding yielding 4.434 per cent, more than two basis points below the pre-issue trading level at 1pm ET. This is the lowest yield for a two-year Treasury issue since January. The size of the issuance in January was 60 billion dollars. John Canavan, analyst at Oxford Economics, said the prospect of the Fed laying the groundwork for a September rate cut next week "has sustained strong short-term Treasury demand this month, which has carried over into this afternoon's auction".