The $40,000,000,000 3yr note auction is in and so far, so good as far as MBS and tsy's are concerned. 

Here are the official results, note that the "direct bid" percentage of 23.4% is a record and the average is only around 6%. HUGE participation from direct bidders! The bid to cover ratio was 1 bid accepted for every 2.98 submitted, this is about average, nothing special though.

3-YEAR NOTES
 
YIELDS
    High        1.490 pct
    Median      1.452 pct
    Low         1.388 pct
PRICE/ACCEPTANCES
    Price              99.663820
    Accepted at high   79.20 pct
    Bid-to-cover ratio 2.98
AMOUNTS TENDERED AND ACCEPTED (dollars)
    Total accepted                         40,000,191,000
    Total public bids tendered         119,016,271,000
    Competitive bids accepted         39,918,320,000
    Noncompetitive bids accepted    81,871,000
    Fed add-ons                            1,553,093,000

    Primary Dealer Tendered         82,866,000,000
    Primary Dealer Accepted          15,406,200,000
    Primary Dealer Hit Ratio           18.6% of what they bid on
    Primary Dealer Overall Award   38.5% of issuance
   
    Direct Bidder Tendered            15,229,000,000
    Direct Bidder Accepted              9,342,000,000
    Direct Bidder Hit Ratio              61.3% of what they bid on
    Direct Bidder Overall Award      23.4% of issuance

    Indirect Bidder Tendered         20,839,400,000
    Indirect Bidder Accepted          15,170,120,000
    Indirect Bidder Hit Ratio           72.8% of what they bid on
    Indirect Bidder Overall Award   37.9% of issuance

NOTE DETAILS
    Issued date    Jan. 15, 2010
    Maturity date  Jan. 15, 2013
    CUSIP number   912828MG2

Despite a slight bit of initial weakness, the charts are in fine position as the 10yr is holding one of it's more aggressive support levels at 3.73.  As always, there's plenty of risk for volatility following auctions, but we'll watch the 3.73 and 3.75 levels.  For now, we're in good shape. (This chart is scary but dont worry prices have recovered. The FN 4.5 is currently back to +0-17 at 100-18)