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After 9 consecutive auctions with rising yields, today's just concluded 2Y auction saw the first sequential monthly dip since August 2017, when the Treasury's sale of $34BN in 2Y paper stopped at 2.538%, down from last month's 2.595%, with the high yield tailing the When Issued 2.536% by 2bps, the 3rd tail of the past four 2Y auctions.

Internals were soggy as has been the case recently, with the Bid to Cover declining from 2.877 to 2.730, while the take down was in line with recent averages, as Indirects took down 42.27%, above last month's 39.3%, but below the 6 month average of 45.0%; Directs were virtually unchanged at 15.40%, while left Dealers holding 43.3% of the paper.

Overall, a rather unremarkable, if slightly weak auction, perhaps hinting that the primary market is for the time being content with the pace of Fed hikes and the notional amount of outstanding short-term paper.