10 Year Auction Strong - Rates Fall

Rates fell to the 3.12% level on the 10 Year Note following a strong 10 Year Auction today. The high rate was 3.19%, lower than the expected 3.228% the market was expecting.

As we have been reporting over the past couple of days, rates appeared to be testing the high at 3.174 on a close basis. Should rates continue down, we expect support at 3.04%, the 4 week moving average.