The 3 year note auction, the shortest maturity of the week’s auctions, was light as the yield was slightly above the when issued and the bid to cover of 2.91 was below the 12 month average of 3.12 and the smallest since Feb. Today’s auction comes in the context of a Treasury market that is down sharply as are muni bonds and MBS. With this market environment, tomorrow’s 10 yr and Thursday’s 30 yr auctions will be a huge focus.
