SMRA's John Canavan said today's $34B....>

US TSYS/5Y: SMRA's John Canavan said today's $34B 5-year note auction "went well

this afternoon, despite the overall negative market tone. The auction stopped

just below the 1:00 p.m. bid side with a good bid/cover, and strong buyside

demand. There was a 69.6% Indirect takedown, along with a Direct bidder takedown

of 7.1%." 

- He adds that "the auction stopped at 1.911% with a 56.36% allocation at the

high yield. The WI was last bid around 1.912% at the 1:00 p.m. deadline. The

auction bid/cover ratio was 2.52, down from 2.58 last month. The bid/cover over

the past year averaged 2.48 over the past six months, but a larger 2.54 over

just the past four months."