Reply To: Bond Traders Weekly Outlook: Europe, Over Tightening and Recession Fears

#49222
Truman
Participant

U.S. Treasuries higher start with longer tenors expected to show relative strength in the early going.

Treasury futures began the overnight session quiet but began rising during Asian trade. The advance continued through the night, producing highs during the past hour.

Overnight trade featured a lower showing from Asian equities, followed by modest losses in European stocks. Sovereign debt, meanwhile, trades mostly higher. Economic data released overnight showed smaller than expected November credit growth in China while October growth figures from the U.K. exceeded expectations.

U.S. Treasury will sell $40 bln in 3-yr notes this morning, followed by a $32 bln 10-yr note reopening in the afternoon. The U.S. Dollar Index is down 0.1% at 104.73.

Yields:
2-yr: -2 bps to 4.32%
3-yr: UNCH at 4.07%
5-yr: -3 bps to 3.73%
10-yr: -4 bps to 3.53%
30-yr: -4 bps to 3.51%