While this week's 2Y and 5Y auctions were solid with impressive stats and indicative of solid demand for US paper, today's 7Y auction was nothing short of stellar.
Printing at a yield of 0.68%, this was not just 57bps below February's 1.247%, but more importantly it stopped through the When Issued 0.707% by 2.7bps and was the lowest yield for a 7Y auction on record.
But what was even more impressive was the bid to cover which soared from 2.49 last month to a whopping 2.75 in March, the highest since November 2012.
Finally the internals were in line, with Indirects taking down 62.35%, just below last month's 63.0% and the six auction average of 63.4%, and with Directs easing a bit to 9.1% from 13.1%, Dealers were left holding 28.6%, up from 23.9% last month.
Overall, a blistering auction with spectacular buyside demand for US debt, which in light of the onslaught of new issuance coming down the pipeline to fund the $2 trillion stimulus - not to mention today's risk-on bonanza - was just a bit surprising.