Auction bullet points:

• $44 BLN 2-YEAR NOTES AT HIGH YIELD 0.802 PCT, AWARDS 95.78 PCT OF BIDS AT HIGH
• BID-TO-COVER RATIO 3.16, NON-COMP BIDS $416.6 MLN
• PRIMARY DEALERS TAKE $22.08 BLN OF 2-YEAR NOTES SALE, INDIRECT $19.36 BLN

After the results, MBS sold off 4 ticks or so, nothing major.  Tsy yields in the long end had already conceded up to around 3.4, and so only moved marginally higher before joining MBS for some moderation.

Said moderation has made for more or less unchanged levels from pre-auction trading.  Here's how it all looks.. 

So this is why we advise more patience than you might want to have following auctions...  The first move down was quasi alert-worthy, but now we may be headed back to test the resistance in more positive areas of the day.    Stay tuned!