This week's final auction is over, in the form of a $13 billion 30 Year reopening, which like the previous 3 and 10 Years, was "good enough" but certainly nothing to write home about. The final yield of 3.660% stopped through the When Issued by 1 basis point so the market was mispricing the demand in the minutes leading up to the sale, however, the Bid to Cover of just 2.26 showed that not all was well under the sun - this was the lower BTC since August 2011, or the "debt ceiling" auction, and lower than both last month's 2.47 and the LTM average 2.57. The internals were in line with Indirects allotted 40.2%, Direct take down doubling from 8.5% to 16.3% and Dealers allocation dropping from 51.3% to 43.4%. Finally, following the past two auctions, the collateral squeeze in the bond market appears to have eased a bit on the short end with the 3 Year trading -0.02% down from -0.55% yesterday, although the 10 Year squeeze continuing still and trading special-er at -0.40% compared to -0.30% yesterday. How long until the Fed monetize all the Dealer allocated $5.6 billion in future POMOs? Keep an eye out on Cusip 912810RB6 in future 30 year POMOs to see how much of this bond is promptly flipped back to the Fed.

