The Treasury has floated a two-year bond for the first time in two-and-a-half years as it looks to avoid long-term exposure to high-interest rates while also satisfying the need to fill the budget deficit for the fiscal year.
The two-year tenor is one of the shortest that the government can offer for a bond, and is normally deployed in times of high-interest rates. The shortest is a one-year paper, last issued in 2012.
