US 3-yr note auction shows decent demand - analysts

"It was a strong auction, the cover ratio was high," said Tony Crescenzi, chief bond market strategist at Miller, Tabak & Co in New York, adding "it may speak more to the preference for short-term debt instruments than it does to (demand for) U.S. debt instruments on the whole."

No, Tony. It speaks more to the fact that recent actions taken by Treasury and the Fed have caused reserves in the system toswell by $600 billion!

Given this, how hard did you think it would be for $25 billion of those reserves to be swapped for higher interest bearing notes?

Duh!