• 10 year auction has impressive demand, but for higher rates.
• 3.45 Bid To Cover, but 3.735 % high yield with 70.94% of the bids at high yield
• MBS and Treasuries both slightly better on the announcement
• 4.5's are now down only 2 ticks on the day at 100-29 and 10yr yields are back down to 3.72+ from 3.74+

Looking at the resistance at 3.72, that's the first challenge for the bond market if it would like to improve this afternoon.  Once that breaks (if it breaks), the rest of the day is very likely "there or better," but until then, stay tuned.  For the moment anyway, risks of reprice for the worse are greatly decreased, and probably favor a reprice for the better to a small extent, though I'm not comfortable assuming a rally will take place with these auction results until we've seen some more trading.

(AQ to add more color on the auction)