Bottom Line: not exceedingly strong, but not horrible.  However, initial reaction in bond markets is to the downside.  MBS are off a few ticks to 101-19 and 10yr tsy yield is knocking on the 3.27 ceiling.

• $39 bln 3-year notes at high yield 1.445 pct,
  
• 61.96 pct of bids at high
• bid-to-cover ratio 2.76,
  
• non-comp bids $71.6 mln
• primary dealers take $15.54 bln
  
• indirect $19.05 bln, just about 50%

More to follow shortly in MBS Lunch Commentary