The US stock market may be in shambles and the Mahwah Stock Exchange is offline for nearly 2 hours now, but that had no impact on demand for US paper, in fact moments ago the US Treasury just sold $21 billion in 10 Year paper without a single hitch. With a When Issued of 2.233%, the bond priced 0.8% through at 2.225% showing that when one can't buy anything else, one buys what one can, in this case 10 Year paper.
The internals were solid, with a 2.72 Bid To Cover, above the 2.67 TTM average, Indirects getting 58.1% of the auction, and Directs holding 12.1%, leaving Dealers with 29.8% of the take down - all in line with recent averages.
All in all a very solid auction, and perhaps the biggest surprise was that the repo in the 10Y ahead of the auction this morning was 0.00%, the first non-negative print in many months, suggesting that not even shorts had to be slammed into today's action.

