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Here are what the charts looked like roughly 20 minutes ago:

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It looked as if potential support might just be emerging.  Having given the volatility a bit more time to play out, we have indeed encountered support, hopefully it's not temporary...

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Reprices for the worse--if you haven't seen them already--are still possible to probable.  Try to gauge how much your lender hedged their rates for today's auction though.  If you were already .375 worse this AM, you may get no reprice to .25.  The more aggressive rates were this AM, the closer to .5 and maybe even .625 a reprice might be. 

Official auctions results are below and we'll dig into strategic discussion in the rest of the day's commentary.

The Treasury has successfully auctioned $25 billion 10-year notes.   

The high yield was 3.692%, which was 3+ basis points lower than the 1pm "When Issued" yield.

The bid to cover ratio, a measure of auction demand, was 2.67 bids submitted for every one accepted by the Treasury.  This compared to a 3.0 BTC in the last 10yr auction

Dealers took 53.3% vs. 53.2% last time

Direct Bidders took 12.9% of the issuance. Previously 17.2%

Indirect Bidders were awarded 51.2% of the auction, vs 52.9% last time.

Overall...Not a great auction.

Here are the results:

10-YEAR NOTES 
  
YIELDS
    High        3.692 pct
    Median    3.640 pct
    Low         3.537 pct

PRICE/ACCEPTANCES
    Price                        99.443944
    Accepted at high      95.17 pct
    Bid-to-cover ratio     2.67

AMOUNTS TENDERED AND ACCEPTED (dollars)
    Total accepted                             $25,000,006,500
    Total public bids tendered            $66,838,081,500
    Competitive bids accepted           $24,755,125,000
    Noncompetitive bids accepted     $119,881,500
    Fed add-ons                                  $125,000,000
   
    Primary Dealer Tendered            $46,900,000,000
    Primary Dealer Accepted             13,320,000,000
    Primary Dealer Hit Rate               28.4% of what they bid on vs 25.3% last time
    Primary Dealer Total Award         53.3% of total auction
     
    Direct Bidder Tendered               8,400,300,000
    Direct Bidder Accepted                3,775,300,000 
    Direct Bidder Hit Rate                 44.1% of what they bid on
    Direct Bidder Total Award           12.9 % of total auction   

    Indirect Bidder Tendered            12,404,200,000
    Indirect Bidder Accepted            8,216,125,000
    Indirect Bidder Hit Rate              66.2% of what they bid on, VS. 52.9 last time
    Indirect Bidder Total Award        51.2% of total auction
  
 
NOTE DETAILS
10-Year Note
CUSIP Number 912828MP2
Series B-2020

Issue Date February 16, 2010
Maturity Date February 15, 2020
Original Issue Date February 16, 2010
Dated Date February 15, 2010

Dutch auctions are also called uniform-price auctions. Successful bidders pay only the price of the lowest accepted bid, rather than the actual price they bid as in a multiple-price auction.

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