circle becomes an oval after saving

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Using esri desktopv10 i am editing a "tank" layer.
It is selected as the only editable layerIt has three features all of which have circle as the diagrammatic property.I use the circle tool and construct a new circle.It draws nicely.
Then I save editThen I stop editing the layer.Visually it turns into an oval!Thoughts?

Thanks to all for answering!



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