We saw a decent US 10yr auction. It (effectively) came through secondary levels by over a basis point. The indirect bid (external official sector driven) at 71.2% was down from last time but still decent. Direct bidders (domestic real money driven) was up to almost 20%. Overall there was less need for dealers to take up the slack, and the consequential cover at 2.6 times was decent. The reaction saw yields drift down by a few basis points in the aftermath, and that soft tone continued into the US close. Overall, the auction confirms there are buyers of US Treasuries. Flows data last week showed net selling, so at ... (full story)