The 7-Year auction drew a D grade, with foreign buyers taking 60.78% of the offer eight days before the Fed's decision. Leveraged funds are record short the Japanese Yen at the 0th percentile of the past two years and record short Russell 2000 futures at the 2nd, while sentiment's elevated reading count jumped from 11 to 14 and five of six AC pillars turned bearish. Weak demand for duration stacked against crowded shorts in currencies and small caps unwinds fast if the FOMC surprises dovish.