The 3 yr note auction is done. It went well.

The US Treasury successfully sold $35bn 3 yr notes at a high yield of 1.96%. Primary Dealers took $14.13bn while Indirect bidders were awarded $15.27. The bid to cover.... 2.82 bids for every 1 bid that was accepted by the Treasury.

The Dow has reacted favorably to the decent auction results....on the other side of the market, the UST10YR note yield has risen 4 bps to 3.89. Consequently the FN 5.0 has lost some steam as this has occurred.

In recent Treasury auctions we have witnessed some lenders reprice for the worse as market conditions turn more volatile. If you are floating short term and counting every dollar of income...it would be safe to keep your finger close to the SUBMIT LOCK button. Stay tuned.