Any concerns that the first bond auction following the US downgrade may not price well can be put to rest. Not surprisingly, following the historic rout in the stock market over the past week which has seen nearly $8 trillion in global capital market losses recently, the Indirect take down in the just completed $32 billion 3 year auction surged from 34.5% in July to a whopping 47.9%, the highest since May 2010, when the market was imploding for the first time following the first Greek collapse and when it was unknown just what the response by the central planners would look like. The Indirect hit rate was a solid 75.8%, as virtually all submitted bids got allocated in the final take down. As expected the note was a smashing success, with the When Issued trading 0.515%, and the final price closing well inside, at 0.50%, a record low yield. The Bid To Cover was close to a record high coming at 3.289, up from 3.219 last month, and well above the 3.162 average over the past year. Completing the data set was the take down of Dealers which was 41% on 51.3 LTM average, and the Directs which came in line at 11.1% compared to 12.93% LTM. Overall a very strong auction driven primarily by equity capital market concerns.