28 Jun 2013
Flash: 10-year US treasuries finish higher – RBS
FXstreet.com (New York) - Treasuries are modestly higher this morning as risk-on returns after Fed officials fired shots across the bow of the sellers this week, notes the RBS Research Team.
Meanwhile, Bunds have underperformed Treasuries by 3bp as French and Spanish supply weighs. Semi-core EU debt spreads are flat while peripheral spread are a touch wider.
According to the team, “Our overnight Treasury flows saw Asian investors step in as the market dipped in the early going: Asian commercial banks bought 5-years, 10-years and 30-years and asset managers bought 3-years and 10'-years. In European hours our flow was more two-way with some central bank selling in 2-years and 3-years, two-way spec activity in 10-years, levered paying in 2's/5's/10's in swaps and a few receivers in spreads. Total Treasury inter-dealer broker volume was 93% of the 10-day average through this morning.”
Meanwhile, Bunds have underperformed Treasuries by 3bp as French and Spanish supply weighs. Semi-core EU debt spreads are flat while peripheral spread are a touch wider.
According to the team, “Our overnight Treasury flows saw Asian investors step in as the market dipped in the early going: Asian commercial banks bought 5-years, 10-years and 30-years and asset managers bought 3-years and 10'-years. In European hours our flow was more two-way with some central bank selling in 2-years and 3-years, two-way spec activity in 10-years, levered paying in 2's/5's/10's in swaps and a few receivers in spreads. Total Treasury inter-dealer broker volume was 93% of the 10-day average through this morning.”