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Bond Market Not Seeing Any Upcoming Rate Hikes After A Blistering 2 Year Auction

Last month, with the entire world absolutely certain that the Fed would hike rates, it seemed it was easier to pull teeth than to find buyers for the December 2 Year acution. Not so much this time: moments ago the US Treasury sold $26 billion in 2 Year paper in an auction delayed from yesterday's snow day, in a whopper of an auction which saw 3.739 dollars in demand for every dollar, a Bid to Cover that was the highest since December 2013. and far above the 3.38x TTM average. And it wasn't the rising yield that drove interest: quite the contrary - the High Yield of 0.54% not only plunged from last month's 0.703%, but also priced through the 0.544% When Issued. Finally, while Directs took down only 8.75% as a result most likely of Pimco moving away from the short-end, and the lowest since June 2013, it was the Indirects that soared to 48.7%, the highest since February of 2010 when it was 54%. 

Overall, if anyone is seeing a rate hike announcement on the imminent horizon, it sure isn't the exuberant buyers of today's 2 Year auction.