While on the surface today's auction of $30 billion ion 3 Year paper [3]was unremarkable, pricing at 0.715%, through the 0.72% When Issued at 1 pm, and a Bid to Cover to 3.450, which was above last month's 3.255, and above the TTM average of 3.318, what was perhaps most notable about the auction was the surge in Indirect demand, when the takedown by the investor class soared from 28% in January to 42%, the highest percentage since the month of the last real debt ceiling crisis - August 2011 - when it was 47.9, and was offset by a plunge in the Dealer bid, which was left with just 41.3% of the auction, well below the 52% TTM average, and the lowest also since August 2011. What was so special about today that makes the August 2011 comparison palpable? Perhaps that as we reported a few hours ago, the GOP is about to fold completely on the debt ceiling issue and kick it back to 2015. Aside from that who knows.
[4]