Since any debt issued under 3 years during ZIRP (i.e., in perpetuity) is nothing more than a cash for cash exchange, only with the conversion of counterparty risk from unsecured bank obligations (if cash outflow is from deposits) into Uncle Sam exposure, it is no surprise that today's 2 year bond auction was a snoozer. Sure enough, the just auctioned off $35 billion in 2 year bonds came at a nominal yield of 0.273%, precisely where it was last month, with investors getting a nominal yield in the off chance that Bernanke loses all control of the curve and hyperinflation arrives in under 730 days. For now this probability appears minimal. The internals were just as boring. a 3.6 bid to cover, lower than last month's 3.94, and below the TTM average of 3.77. Directs took down 17.5%, Indirects 27.27% and Dealers were stuck holding 55.33% of the same bonds that Bernanke will be selling to them soon too, resulting in a PD inventory in the 1-3 year window near all time highs. And following the balance of this week's auctions, which include a 5 and 7 year bond for a total of $99 billion in gross issuance, net US debt will rise by $46.8 billion, which together with an earlier net addition of $13 billion in debt, will take total US debt to just shy of $16.1 trillion.