No major surprises in today's 2 Year bond auction, which came as expected at a record low yield of 0.498% (0.67% previously), and a 3.12 Bid To Cover (3.33 previously). 95.59% of the auction was allotted at the high yield (oddly, the low yield was 0.396% - a pretty substantial low-high range). The Direct Bidders took down 12.07% of the auction, but the most notable shift was that Indirects (the Chinas of the world, which as we pointed out had been reducing their holdings), took down a mere 29.25%, the lowest since April 2009. The result was that Primary Dealers were stuck with buying the largest portion in a year: at 58.7%, this was the largest proportionate take down since July 2009. It seems our foreign creditors (and overlords) are aggressively frontrunning the Fed ever further to the right on the curve.