If you were holding your breath, it’s ok to exhale.  The paper crossed the screen at 3.092% with only a baby tail of .03 bps.  Indirect bidders took 61.2% of the issue, a very strong number.  The bid to cover was also decent at 2.74 to 1.  Overall, let’s give it an A-.  Looks like the Treasury scored a hat trick with this week’s auctions.  From our speculative bias, we see investors looking for a correction in stocks as all the good news this week has done little to spark a continued rally.  With valuations (stocks) below current S & P levels, it’s hard to find a reason for stocks to do better.  If our bias is true, look for treasuries to be a safe haven investment and Austin mortgage pricing to improve in its wake.   Could be the reason that 109 billion in paper has been sold without a hitch.  Still a tricky call so be careful out there.  Currently, the 10 year note is unchanged, mortgage backs down 1/32nd, and stocks down 3 points on the day.