The 5 year note auction (39 billion) just hit the tape with very poor response.  The issue created a tail of 5.4 bps (very high and bearish) and bid to cover was a measly 1.92 to 1.  The results are what traders call a “bow wow” (dog) showing little demand for that yield and duration.  Mortgage backs fell like a rock on the news from plus 4/43’s to down 6/32’s.