A good 10 yr auction and have to ask why

The 10 yr note auction was pretty good. The yield of 4.093% was about 1 bp below the when issued. The bid to cover of 2.56 was above the 12 month average of 2.49. Direct and indirect bidders took down 87% of the auction which is the most since August. 

Bottom line, while a good auction, one has to wonder whether the stress in bank stocks and the mortgage…