And since there was no physical squeeze going into the auction, it was hardly a surprise that today's 10Y auction likewise tailed by 1bps, printing at 2.332%, wider than the 2.322% When Issued, and while it was well below last month's 2.56%, it was above the 6 month average of 2.26%.

The internals were likewise disappointing, with the bid-to-cover dropping to 2.48 vs last auction 2.66, and in line with the 6 month average of 2.44

Indirect bidders awarded 65.2% vs last auction 65.8%, and above the 6MMA of 62.3%, as direct bidders saw a sharp drop in take down, sliding to 5.3% vs last auction 15.7%. Finally, dealers were awarded 29.5% vs last auction's 18.6%.

Overall a mediocre, tailing auction, which prompted the Treasury complex to pare its intraday gains, and even briefly push the Dow Jones in the green.