After last month's 3Y Treasury auction priced at an all-time low yield, moments ago today's sale of three-year paper stopped at 0.280%, higher than last month's record of 0.23% - and also 0.3bps through the When Issued 0.283%. And while the yield ticked up modestly, so did the auction size, which rose from $42BN last month to a new all-time high of $44BN, as the Treasury rushes to fund the trillions in fiscal deficits that the US will incur in the coming years.

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Despite the record auction size, demand was solid: bid to cover was virtually unchanged from last month at 2.55, and above the six auction average of 2.43; total bids were $112.6BN, sharply higher than the $101.6BN in bids tendered for the previous 6 auctions.

The internals were also impressive, with Indirects taking down 53.3%, down slightly from 54.4% last month but also above the 6-auction average of 50.4. Directs rose again, taking down 14.5%, the highest since February's 18.1% (above the average of 13.2), leaving Dealers 32.2% of the auction (slightly below the 36.3% average), which they will seek to promptly sell back to the Fed.

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Overall, a solid auction, even if this was largely to be expected as the near-end now trades as if Yield Curve Control has already been launched.