2 yr auction excellent, all in on rate cuts

I rarely write on the 2 yr auction as it remains tied to expectations for Fed policy rather than general market expectations of inflation, growth, etc…Well, today is worthy of a comment as the auction was excellent. The yield of 4.434% was about 2 bps below the when issued, tailing well. The bid to cover of 2.81 was above the previous 12 month average of 2.65 and the best since last August. Also, direct and indirect bidders took down 91% of the auction, the most since I have data going back to 2003.