The September 24 7-year Treasury auction scored a grade F, with foreign buyers taking just 57.2% of the issue, three weeks before the Fed meets on October 28. That soft bid lands as leveraged funds hold Russell 2000 shorts and British Pound longs at the 1st percentile of their two-year range, the most crowded positioning in either market, while Australian Dollar longs sit at the 95th percentile. If foreign demand doesn't recover before the FOMC decision, a government needing buyers meets positioning already stretched in both directions.