This morning Bloomberg was reporting that today's $40bn auction of 2YR Treasury notes was expected to go well, and they weren't lying. The auction drew a yield of 1.15 percent (5 bps lower than the consensus estimate), and 2YR yields closed at 1.10 percent. Demand was also very strong—3.19 bid-to-cover—and that's probably the most important takeaway, given the scary weak demand at recent 10YR and (especially) 30YR auctions. Foreign central banks were big buyers today. A good start to this week's record $104bn in Treasury note auctions.