Yesterday’s US 2-year sale tailed and given the $67 billion size, there is a good risk this one could as well.

The last six 5 year auctions have had 3 stop throughs and 3 tails, though the tails were larger at 1.6 bps on average.

BMO notes that: The
2s/5s/10s cash butterfly is trading at the cheaper end of the range since
late-2023 which enhances the relative value case for 5s versus the wings.