US sells $32 bln 7-year notes at 3.127; bid to cover 2.85

The bid to cover ration was better than the average of the last 10 auctions.

Elsewhere, gold bounced from support at the $1074/1075 area and now trades at $1079.

EUR/USD has steadied and now trades at 1.3970 after a dip into the 50s.

Look for the market to play things close to the vest until the Bernanke circus comes to a close at 3:20 PM EST. If the cloture motion gets 60 votes, Bernanke will be assured of confirmation.