While there were some concerns about the demand ahead of today's 10Y auction, they quickly evaporated after today's CPI miss which promptly pushed yields to session lows amid a bout of short-covering, which eliminated fears about chasing into the auction or unmet concessions. And sure enough, moments ago, as part of the month's refunding, the Treasury sold a record $41 billion in 10Y notes, matching the all-time notional high from November.

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The auction priced at a high yield of 1.1550%, stopping through the When Issued 1.157% by 0.2bps, and down slightly from last month's 1.164% if a far cry from the record low yields hit in early 2020.

The Bid To Cover of 2.37 which while down from last month's 2.45, was inline with the 2.38 six-auction average.

The internals were also in line, with Indirects taking down 60.6%, slightly lower than the January 62.2% and the recent average of 61.0%. And with Directs taking down 18.9%, Dealers were left holding 20.5%.

Overall, a solid if completely unremarkable 10Y auction, which is probably good news for a market where fears of rampant inflation - and much higher yields in the future - are now all the rage.

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