April's 3Y auction wasn't quite as bad, and moments ago the US Treasury sold $40BN in 3Y paper - the largest offering for this tenor since April 2010 - it came on the backdrop of the Fed massively monetizing, well, everything, why is probably why despite the near record low yield of 0.348%, the lowest since April 2013, it tailed the When Issued by a much more modest 1.2bps.

The bid to cover also improved modestly, rising from 2.20 in March - the lowest since Dec 2008 - to 2.27, which still was the second lowest in 11 years.

The internals were in line, with Indirects rising modestly from 52.3 to 55.4, Directs taking down a modest 4.1%, which while up from 3.7% last month was still well below the 16% six auction average, and Dealers were left holding on to 40.5%, bonds which they will quickly sell back to the Fed.

In summary, a lackluster auction which despite the near record low yield tailed and the BtC was modest as foreigners showing muted interest. As a result, the 10Y yield rose to session highs after the auction and was last seen at 0.666%, the HOD.