After yesterday's mediocre, record-large 3Y auction there was some consternation that today's issuance of benchmark 10Y notes (in the form of a 9-year 10-month reopening of cusip AC3) would be met with less than stellar demand especially following today's blowout in rates. Well, not so fast, because as we noted ahead of the auction, with a massive short overhand which pushed the 10Y to a -0.65% special rate in repo, it was likely that we would see significant short covering into today's auction... {tweet} {chart} That's precisely what happened, because with the WI trading at 1.172% at 1pm ET, the sale of $38BN in ... (full story)