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Jefferies economist Tom Simons said......>

US TSYS/5Y
US TSYS/5Y: Jefferies economist Tom Simons said "today's 5-year note auction
stopped exactly where it was bid at 1:00PM at 2.066%." He added "the 2.066%
stopout rate is the highest since April 2011. Since the auction stopped between
2.000% and 2.124%, the auction resulted in the accidental reopening of an old
7-year note (CUSIP: 912828M80) of which there was already $29 bln outstanding."
- He adds "the bid cover of 2.46 is on the soft side, but not bad considering
the amount of supply auctioned today. There was a 2-year note auction at 11:30AM
this morning."
- He adds that 5-year auction "indirects took down 65.8%, which is very close to
the 12-month average" while "direct bidders took down 11.4%, which is at the
upper end of the recent range. Dealers took down 22.8% of the auction, which is
very close to the recent averages."
- He called the 5-year auction results "pretty ho-hum, with the stop on the
screws and the average distribution. 5s have been trading well on the curve and
probably will continue to do so into month-end."

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