Results just hit the tape with a 3.0 to 1 bid to cover, 29% indirect bidders, 17% direct bidders, and a yield of 3.754%

Results just hit the tape with a 3.0 to 1 bid to cover, 29% indirect bidders, 17% direct bidders, and a yield of 3.754%.  The issue was actually 21 billion, not the 40 billion I had reported earlier.  The issue did have a .5bps tail and overall, sponsorship from both direct and indirect buyers was light.  We’ll give it a B.  MBS and 10 year treasury yields are virtually unchanged from pre-auction levels.  Down 10/32’s on the note, down 4/32’s on MBS, and plus 42 on the Dow is currently on the score board.  “Cautiously optimistic” fits our current schizophrenic mindset!

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