If last month's 10Y, and yesterday's 3Y auction, were mediocre at best, today's 9-Year, 11-month reopening was nothing short of blockbuster.
Printing at a yield of 2.615%, and stopping through the 2.623% When Issued by 0.8bps, this was the lowest yield since January 2018, and a long way below the recent cycle high of 3.225% hit in October.
The internals were just as impressive, with the Bid to Cover jumping from 2.35 to 2.59, the highest since June, and obviously well above the 6 month auction average of 2.45. But most notable was the surge in foreign official demand as Indirect bidders took down 69.4, up from 59.5, the highest since November, and above the 63.6 average. Meanwhile, as in yesterday's 3Y auction the Directs dropped from 12.2% to 9.1%, leaving Dealers holding 21.5% of the auction, down from 28.4% last month.
Overall, a very strong 10Y reopening, and one which sets the stage favorably for tomorrow's 30Y auction.