Two-year note auction a mixed bag
* The notes were sold at a yield of 4.93% vs. pre-auction expectations for 4.936%. I'd call that Neutral for bond prices.
* The bid-to-cover ratio measures the amount of bids submitted against the amount of notes sold. It was 3.03. That's well above average and the highest since November 2000. Bullish.
* Indirect bidders bought 26.6% of the sale. That's down from 34.7% last month and the lowest since August. Bearish.
So, I'd call this a wash. Bonds are ticking down in price, up in yield, ever-so-slightly in the wake of the results. The real fireworks start tomorrow, with existing home sales for December due out at 10 a.m. New home sales will follow on Friday, also at 10 a.m.