Launching this week's Treasury issuance of 3, 10 and 30Y paper, this afternoon's 3-year note auction results was "stellar", as Stone McCarthy put it.

The auction stopped 0.9 bps through the 1.529% When Issued, printing at 1.520% - the third consecutive "stopping through" auction in a row - with the highest bid/cover in more than a year and a half, as 3.13 bids tendered for every dollar, the highest since December 2015, far above the 2.80 6 month average. There were $75.1BN bids for $24BN in notes sold (ex-SOMA).

The internals were also impressive, with foreign buyers, or Indirects, awarded 64.1%, above last month's 52.6% and above the 6MMA of 54.6%; Directs took down 10.2%, also above the 6 month average of 8.37, leaving Dealers with 25.8% of the final allotment.

Overall, another strong auction on the short-end of the curve, suggesting that there may have been an outsized element of short covering following today's much more hawkish then expected JOLTS report which sent the USD surging, and prompted speculation about a faster than expected tightening by the Fed.