It's only appropriate that a year which saw 10Y rates soar above 5%, the most in 16 years, before sliding on fears of an imminent recession and Fed easing cycle, that the final coupon auction of the year was a dog with a capital D. Yesterday's far stronger than expected 5Y auction surprised many: not only was there no concession with yields tumbling all day, but there was no tangible reason for the burst in demand that lead to one of the strongest stop-throughs on record, besides perhaps a big squeeze overhang as shorts sought to cover in the year's last trading hours. Well, moments ago we did get confirmation that ... (full story)