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J.P.Morgan note that Wednesday will see the Treasury auction $61bn 5-Year notes, "unchanged in size from last month. 5-Year yields have increased 10bp since the May auction and are trading near the high end of the range they have held for the last three months, though the sector appears rich along the curve after adjusting for the level of rates and the shape of the curve. The WI 5-Year roll opened at +2.25bp, in line with our fair value estimate, and is now trading at +1.875bp, roughly in line with the erosion of carry. From a liquidity perspective, market depth in the 5-Year sector declined last week alongside a broader deterioration in liquidity and remains impaired relative to its 1-Year average. Overall, despite the rise in yields, given current valuations and reduced liquidity, we think tomorrow's auction will likely require above average end-user demand in order to be digested smoothly."