The Treasury will christen the Street with $22billion 5 year notes in about one hour. I think that this auction will go well also as did the batch of 2 year notes sold yesterday.The market trades awesome and in spite of the GDP revision to an above trend 3.3 percent and in spite of all the supply ,the 10 year note is only 4 basis points off its recent highs.
There is a huge index extension tomorrow and in my opinion the street will want paper on the shelf for that.
I also think that there is a meteorological factor at work here. I do not believe that traders will desire to carry short positions over a three day weekend when the hurricane can seriously damage energy production in the Gulf.
Against that background, prognosticating yield levels when trading resumes on Tuesday is more difficult than guessing the path of the hurricane.
Therefore, I suspect that the auction today will be well received and will trade well subsequent to the auction.