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Treasuries push lower, ebbing amid.......>

US TSYS/5Y
US TSYS/5Y: Treasuries push lower, ebbing amid pre-auction shorts/sales into 1pm
ET 5Y auction and post-auction redistribution sales after a holiday- affected
relatively soft 2Y auction earlier. 
- 5Y PROS: Tightness in RP indicates existing shorts; could be US, foreign bid
for 5Ys. 
- 5Y CONS: Low liquidity amid US summer vacations, and UK bank holiday today.
Also compressed auction schedule of 2Y, 5Y auctions both on Monday is a bit
challenging. But traders feel this 2Y auction soft bid is not a big change in
sentiment, just the reaction to low market liquidity, thus not major
implications for 5Y auction. 
- HISTORY: July $34B 5Y auction drew a 1.884% high yld, 1.875% cpn, 2.58 cover,
strong 68.8% indirects, 6.2% directs, low 24.1% dealers.

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