What more do debt markets want?  USA's AAA credit rating called into question last week ostensibly paves the way for lackluster auction results this week thus confirming fears and sending fixed income into a catastrophic debt spiral, right?  Then the first and biggest of said auctions hits a standing triple with nearly 3.0 bid to cover, over 50% indirect bid and a peachy keen yield, AND......  Nothing?  A brief feint down in yield, a brief bump for MBS, then NOTHING? Right back to the middle of the pre-auction range for both?  What gives?

You can see quite the range bound late AM/early PM for MBS with prices vascillating between 99-09 and 99-13.  Unless we break that range on either side, we can probably just keep hitting the snooze button until something more stimulating happens.

In treasuries, you can see the run-up in yield this AM which seems to have priced in the auction results about perfectly, or so it would seem at this early stage.  Here's the full run-down on the auction results:

There's not much left today that requires your attention unless we break out of this price range.  As many have apparently already done, we can start turning our attention toward the rest of the week to see how the longer duration tsy auctions fare compared to their 2yr cousin.  This two year auction is a nice bowl of chips, but if we want to see some serious movement, we too will have to wait for the whole enchilada, hopefully with "green" sauce, not red.