3 yr auction was bad but...

I usually don’t make much of a 3 yr note auction but in light of everything going on, I’ll write on it. It was bad. The yield of 3.784% was well above the when issued of 3.76% (2 bps is a big tail for a 3 yr auction). the bid to cover of 2.47 was below the previous one year average of 2.60. Also, dealers were stuck with 21% of the auction, the most since November 2023.

Stats notwithstanding, just maybe it was the wide movements in the 3 yr notes today that resulted in the lack of demand. The 3 yr yield at around 10am was 3.85% and fell in the hours since so maybe that reduced its appeal.