40 billion of 5 year notes hit the auction block with a not so hot response. Indirect bidding wasn’t bad at 48% but the issue produced a 3 bps tail. Give this one a C. The lack luster auction gave traders a reason to go palms out (turn sellers), taking the 10 year note down 12/32’s in a nano second. Mortgage backs followed suit, falling 8/32’s in the same time period. Market jitters are in play as the Fed is 45 minutes away. Buckle up!