This situation is becoming dire for the Fed.

2nd Worst In 9 Years
(King World News) – Here is a portion of what Peter Boockvar wrote today as the world awaits the next round of monetary madness:  Another Treasury auction, another round of crappy demand. While the 3 yr auction yield was 2.983%, just a hair above the when issued level, the bid to cover of 2.54 was well below the one year average of 2.82 (see chart below).

That is the 2nd worst in 9 years. Also reflecting a very weak auction, dealers were left with 48% of it, the most since July and 2nd biggest since the end of 2016……More Here