The $40b 3 year note auction was about in line with expectations and the recent average. The yield at 1.229% was a touch above where the when issued was trading. The bid to cover at 2.98 is above the average seen in ’09 of 2.70 but is below the 3.33 seen in the prior one. Indirect bidders totaled 60.9%, slightly above the average over the past 6 of 55.4%. On the heels of the Greece and Dubai credit rating moves today, Bernanke reiteration yesterday that rates are unlikely going anywhere soon and the pullback today in global stock markets, selling a 3 year was easy for the Treasury, albeit no better than expected. The real test comes tomorrow when they need to sell a 10 yr note and on Thursday when they come to market with a 30 year.