Blockbuster 3Y Auction: Soaring Indirects And Bid to Cover Scream Fed Hike Is “Policy Error”

So much for worries about a hawkish Fed and a balance sheet “normalization” pressuring bonds yields.
Moments ago the Fed auctioned off both a 6 month Bill in a strong auction, but more importantly conducted a stellar 3 Year auction, which not only stopped through the 1.508% When Issued, printing at 1.500% (83.8% alloted at the high), the lowest yield since February, and the first non-tailing auction since the same month, but it was the internals that took the prize.

This post was published at Zero Hedge on Jun 12, 2017.