Today's 2-year note auction was nothing short of spectacular. The auction stopped modestly thorough the 1:00 p.m. When Issued (2.067%), printing at 2.066%, the first 2%+ yield since September 2008 and the highest in 10 year, but what immediately jumped out was the largest bid/cover in more than two years: the BTC soared from 2.515 in December to 3.22, a level not seen since September 2015, and well above the 6 month average of 2.80. The buyside takedown figures were also tremendous - possibly assisted by the covering of a significant short base - ahead of what is expected to be an increase in front-end auction sizes beginning next month. Indirect bidders took down a whopping 58.3% of the auction from 40% last month, and above the 6MMA of 46.4%; the Direct bidder takedown was 15.9%, also above December's 14.5% and in line with the 6 month average of 15.7%, leaving Dealers with 25.8%, far below last month's 45.5%, and one of the lowest on record. Overall a tremendous auction and one which suggests that foreign buyers have noticed that the yield on 2Y paper is now well above the dividend yield on the S&P, as sooner or later the great rotation will shift, only in the other direction: from stocks to bonds.