BMO analyst Aaron Kohli expects..........>

US TSYS/5Y: BMO analyst Aaron Kohli expects today's 1pm ET $34B 5Y auction "will

be close to the screws" as "5s appear cheap on an outright basis and have built

in a decent concession vs. the front end of the curve, but the offset to this is

the headline risk associated with the nomination of the next Fed chair."

- He still has a "positive "long-term view "of the belly," and "we expect that

the 5-year will outperform on the curve over time, especially as the short-base

there continues to build. Although our expectations for an improvement in

foreign participation may offer some support, outflows from the belly have

increased as of late, offering a negative offset. Although we like the value the

5-year offers, we're hesitant to expect a strong ,auction and would look to be

dip buyers of 5s once the nomination risk is out of the way."