Treasury has successfully auctioned $29 bln 7 year notes (Full Results). 

After yesterday's better-than-expected turnout amount indirect bidders, today served as some sort of confirmation that the 5yr auction was not an isolated incident, with more than half of today's auction being taken by indirects (52.1% vs 52.7% 5 auction avg and 50.93% 10 auction average).  Beyond that, perhaps the best thing about today's auction is that there was a noticeable absence of negatives.  In other words, none of the metrics of the auction were cause for concern due to lying too far outside historical norms.

Demand was in line with recent averages with a 2.85 bid to cover vs  the 2.91 5 auction average. The high yield was a bit lower than when-issued yields at 1pm (2.744 vs 2.762).

After the FOMC announcement yesterday, 10yr notes had met with firm resistance just under 3.42. Yields ground into that level yesterday afternoon and again on several occasions this morning, including in the minute or two immediately preceding the auction (see the red line in the chart below). After the 1:01pm results, yields promptly moved lower and are currently at 3.4069--not a face-melting rally, but decidedly on the positive side.

FNCL 4.5's moved to their highest levels of the day at 102-03 and have climbed more directionally than treasuries in general. Even if current levels are merely MAINTAINED, reprices for the better should be trickling in.

Again...reprices for the better should be coming....