Yuuge 10Y Auction: Stops Through By 1.8bps; Foreign Buyers Surge To 71%

There is only one word to describe today's 10Y auction, which took place just as the dollar was tumbling after the Trump press conference provided virtually no detail on his fiscal stimulus plans, sending all risk assets lower: "Yuuge."

Pricing at 2.342%, today's 10Y reopening of Cusip U24 stopped 1.8bps through the "When Issued" of 2.36%, the biggest gap since May 2016, and below last month's yield of 2.479%m with internals that were likewise scorching: the bid to cover jumped from 2.39 in December to 2.58, while Indirect Bidders, aka central banks, took down a whopping 70.5%, a spike from 57.5% last month and one of the highest on record, while Directs took down 8.7%, leaving a paltry 20.7% to Dealers, also one of the lowest in 10Y series history.

Overall, blistering demand for 10Y paper and the first time since August that the yield has posted a monthly decline.