All Treasury auctions stopped through this week across the 2, 5, and 7 year auctions. People are saying that dealers lost because dealers typically short then when-issued bond and cover at the auctions. If it stops through (high yield is less than when-issued yield) then dealers have to cover their short at a higher price.
I don't quite understand this logic. Assume for example that the dealer shorts the when issued bond at a yield of 1.5% in the morning. Yields rise throughout the day heading into 1 PM to 1.7% before the bidding deadline. The clearing/stopping yield was a 1.69% which suggests that the auction stopped through 1 basis point. So even though it stopped through, wouldn't the dealer still make out since they shorted at 1.5% and covered at 1.69%.