FTN's Jim Vogel quipped of 10Y..........>

US TSYS/10Y: FTN's Jim Vogel quipped of 10Y auction, "That didn't go as planned.

Against a WI bid of 2.237% that improved 0.5bp in the 30 minutes before the

auction, the award of 2.250% was on the high side of expectations. The zeal for

US Treasuries goes only so far, particularly after all the duration sold in the

last 12 trading days."

- He said the auction "award at the high yld was an ok 54.5%, but the rest of

the metrics weren't attractive. Bid cover of 2.23x vs 2.33x at May refunding;

indirects at a low 57.9% or the worst since December; and dealer allotment of

35.3%, also the worst in 8 months. The tail will help distribution before 30s

sell Thursday, but it knocks back the tone on the long end of the quality

market."