Treasuries saw some post-auction.........>

US TSYS/5Y: Treasuries saw some post-auction redistribution trades, as 5Y

auction struggled a bit to draw buyers in thin year-end market.

- FTN's Jim Vogel said that the morning Tsys rally "smacks into auction

reality." He noted that "the award at 2.245% tailed 1.4bp vs. the increasingly

hot WI bid that developed in the 2 hrs before the auction. The last WI look was

2.231% after starting the NY session at 2.258%."

- He added that the 5Y auction "indirects reduced participation relative to last

Dec when ylds were considerably juicier in context of recent trading. Here, 5-yr

ylds are 5bp off the highs of 3 trading days ago. Indirects at 58.4%, lowest

since mid 2016. Dealers at a non-alarming 33.7%, well under the highs of the

last 12 months. Bid/cover of 2.36x was weaker than expected. Best metric was

allotment at high yld of 3.0%."