The US 5yr auction tailed, badly. By 2bp (so, it was done at 2bp above subsequent market levels, with a slight lag). The indirect bid (includes central banks) was decent, if not spectacular. The 5yr area is rich to the curve, by some 20bp to an interpolated line between the 2yr and 10yr yields, mostly reflecting a notable inversion along the 2/5yr segment. Still, this is a bit of a disappointment following yesterday's decent 2yr auction. It's also a bit of a reminder of the refunding announcement due on Monday, which is likely to be heavy, with only some morphing of issuance away from longer dates there to take some ... (full story)