As we previously noted, yesterday's 2 Year auction was an absolute blockbuster and accurately guessed the general direction of the bond market following yesterday's FOMC announcement. Moments ago, the US Treasury sold $35 billion in 5 Year paper, the first of two Note auctions, with the 7 Year due at 1pm today, and like yesterday it too was a very strong auction, with the High Yield tumbling from 1.739% last month, when most were assuming a rate hike is imminent to just 1.288%, stopping through the 1.295% When Issued, and suggesting that the relentless collateral shortage of the past 2 years simply refuses to go away. This was also the lowest closing yield of a 5 Year auction since May 2013. The Bid to Cover rose modestly from 2.39 to 2.49 (below the 2.72 TTM) but it was a far cry from the BTC surge during yesterday's 2 Year issuance. However, the real action was in the internals where just like yesterday the Directs remained under 10%, allowing the Indirect take down to surge to 63.1%, leaving only 27.4% for the dealers. Altogether, a strong showing for the first left of the belly auction for today, and if this is any indication expect a 7 Year auction in 90 minutes to also price stopping well through whatever the When Issued is trading at around 1pm.