After a strong 2 Year on Tuesday, poor 5 Year on Wednesday we close the week with the Treasury's sale of $28 billion in 7 Year paper in what can only be described as a spectacular auction.

The high yield priced at 2.084%, stopping 2bps through the 2.104%, the biggest gap between the two going back to January 2016.

The Bid to Cover was a whopping 2.733, the highest going all the way back to November 2012.

But it was the internals that were most impressive: showing some nervousness in recent auctions, Indirects took down a whopping 81.7%, the highest on record and 10% higher than last month. That left only 9.63% to directs and 8.8% to Dealers, the lowest on record.

And while we do not know what prompted this scramble for paper, it is more than clear that when it comes to the belly of the curve, there is - at this moment - no shortage of interest and foreign central bank demand.

Naturally, the entire curve is well bid on the results, ironically at a time when the VIX was slammed sending the Dow Jones on a 40 points stop run and well in the green.