Treasuries getting rocked on a not so good auction

You know I am not surprised.

The $19B reopened 10-yrs went off at 3.990%, with a 2.62 cover and an OK 34.2% indirect bidder take. The break down, with the demand for more yield playing against the decent $2.62 offered for each buck. The bonds have broken further with the 10-yr tagging 3.986% as the 30-yr, which will have its auction issue tomorrow, is back at the worst levels since Oct 2007 - blurb from briefing.com

Rising yields are likely to kill the refinance business that helped drive the strong Q1 results of many banks.