Not that anyone will care much in light of the Iran-related news barrage hitting every second, but moments ago the US sold $58BN in 3Y paper in what was a rather ugly auction. Let's take a quick look.

In the week's first coupon auction, the US sold $58BN in 3Y notes, at a high yield of 3.579%, up from 3.518% last month but in line with auctions since last August. The problem is that the auction tailed the When Issued 3.58% by 1.1bps, the first tail since August and the biggest tail since Liberation Day. 

The bid to cover was 2.546, down from 2.624 and the lowest since August. 

The internals were also mediocre at best: Indirects were awarded 59.8% as foreign demand was still there but at a subdued pace: the six auction average if 64.3%. And with Directs taking 20.7%, or on the low end of the recent average of 25.3%, Dealers were left holding a sizable 19.5%, the highest since April. 

Overall, this was a subpar, disappointing auction which however could be attributed to the melt up in stocks. However, if this weakness persists in the week's upcoming coupon auctions, that could be a problem.