Amid all the recent worries about demand for US paper, between the Fitch downgrade, the $1 trillion planned issuance in Q3, the doomsday language in last week's TBAC refunding statement which warned of big increases in auction sizes in coming months and - of course - Ackman's latest melodrama, some were worried that today's 3Y auction would be a dud. It wasn't, and in fact today's 3Y auction was nothing short of spectacular. The high yield of 4.398% was below last month's 4.534% and also stopped through the When Issued 4.416% by 1.8bps, the second consecutive stop through auction and 5th of the last 6. The Bid to ... (full story)