As we discussed earlier, Rates have not come down thus far, In fact rates have gone up. I think rates will stay higher regardless of QE. The assumption that the auction will be more crowded is not certain. Perhaps, less buyers will attend the auctions and look elsewhere regardless of FED activity. The Fed can only control so much.
I believe in the growing economy = higher interest rates. In addition I also subscribe to the bond vigilante theory. Many of those tea-Party HF managers who despise Big Ben and the huge deficit look to short USTs in order to make borrowing $ more painful.