In the absence of data, supply again dominated Wednesday's flow, and along with some hefty option-related buying, prices were rescued. The overnight selloff followed through into the New York open. But the pullback was at first, neutralized by a strong swap bid, and in general, deal flow, as the corporate calendar again grew.
There were high hopes of a strong foreign bid for the $16 billion 5-year. The Street was proven right, with a high 2.51 cover, stop on the nose -3.26%, and indirect bids totaling 40.4%. Treasuries then made new highs, backing off slightly into the close.