Back
11 Jun 2013
Flash: Buy 10-year US treasuries on dips – RBS
FXstreet.com (New York) - According to the RBS Research Team, “We continue to advise caution with a bigger picture 'buy dips' mode in 10-year US treasuries – we are waiting particularly to see how the market handles supply this week.”
Global volatility continues, and at some point this will turn to a support for the Treasury market, perhaps coming out of this week's auctions. The big news and driver of price action overnight was the BoJ's decision to not enact any additional policy measures at their meeting last night, despite talk of a LTRO type term loan to bank or an increase in ETF and REIT purchases.
Basically everything is down – our flows in Tokyo were Asian selling in 7-years and 10-years as the market sold off, though in London we had better buying with spec and central bank buying in 10s and other buying in 30s as stops and CTA's pressured the markets lower. Total Treasury inter-dealer broker volume was 166% of the 10-day average through this morning.
Global volatility continues, and at some point this will turn to a support for the Treasury market, perhaps coming out of this week's auctions. The big news and driver of price action overnight was the BoJ's decision to not enact any additional policy measures at their meeting last night, despite talk of a LTRO type term loan to bank or an increase in ETF and REIT purchases.
Basically everything is down – our flows in Tokyo were Asian selling in 7-years and 10-years as the market sold off, though in London we had better buying with spec and central bank buying in 10s and other buying in 30s as stops and CTA's pressured the markets lower. Total Treasury inter-dealer broker volume was 166% of the 10-day average through this morning.