• Prior was 4.080%
  • Bid to cover at 2.25 vs 2.42 prior

This is a 3.1 bps tail and the second large tail in two days. Given the news flow on CPI, the lack of demand for bonds is a surprise but you can also argue it's a sign the bond market is less worried about Fed overtightening.

For me, the liquidity story is the big one and it's starting to seem like we're just waiting for something to go wrong in the bond market now that the Fed no longer has its thumb on the scale.