With the barnburner rally in equities today, the just concluded TSY auction of $26 billion in 2Y paper could have been excused if it disappointed. It did not, in fact it may have been the strongest 2Y auction in years with some truly blistering results.

• The high yield of 1.280% stopped through the 1.284% When issued by 0.4bps, higher than the previous 6 auction average of 1.154%.
• The bid to cover of 2.85 was well above last month's 2.727, the 6 month average of 2.66 and was the highest since May 2016.
• The internals were just as strong, with Directs taking down 11.4%, as Indirects took down 58.9% - the highest since June 2009 - leaving just 29.65% to primary dealers.

In summary: one of the strongest auctions in years, coming paradoxically at a time when everyone is flooding into stocks.