AB/Inbev may change their best known slogan to "This Bond's For You."  They're counting on the world's love of beer to underpin the largest-ever corporate bond offering, but have still had to add margin to the deal in order to garner sufficient interest in the whopping $46 billion offering.  This is much higher than initially expected (some talk yesterday of only $20-30 bln being in US dollars), but so far, markets appear to be taking it in stride.

It's nothing short of impressive, considering that bond markets are in stronger territory despite absorbing so much new supply (Treasury auctions + corporate bonds), even after we consider that Inbev had to add margin to its bond deal.  It speaks to a certain desperation on the part of financial markets to ensure return OF capital (as opposed to return ON capital). 

The stellar 10yr auction corroborates that story with the best bid-to-cover ratio in more than a year and one of the biggest gaps lower from the 1pm expectation (it was a 1.1bps gap and anything over 1.0 is big when it comes to 10yr auctions). 

Bonds are at their best levels of the day with 10's down 2.5bps in total at 2.08.  Fannie 3.0s are up 6 ticks at 100-31.