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14 Jun 2013
Flash: US treasuries sentiment altered by Hilsenrath article – RBS
FXstreet.com (New York) - The late Hilsenrath article from yesterday has changed the mindset of the market into next week.
According to the RBS Research Team, “We still want to buy dips into next week's Fed meeting, but also recognize we may not get the depth of the further pullback we were looking for – don't chase the market, look for a 2.06%-2.30% range into the Fed.”
Global markets smoothed overnight, with everything from the periphery to emerging markets having a calm session (for the most part), with many seeing small retracements of this week's moves. As for Treasuries, Tokyo saw little follow-through from the late Hilsenrath article but London took the bid and ran with it. Our flows in Tokyo were decent two-way in 10-years and 30-years from Asian banks (skewed to better buying). Overall, the Total Treasury inter-dealer broker volume was 124% of the 10-day average through this morning.
According to the RBS Research Team, “We still want to buy dips into next week's Fed meeting, but also recognize we may not get the depth of the further pullback we were looking for – don't chase the market, look for a 2.06%-2.30% range into the Fed.”
Global markets smoothed overnight, with everything from the periphery to emerging markets having a calm session (for the most part), with many seeing small retracements of this week's moves. As for Treasuries, Tokyo saw little follow-through from the late Hilsenrath article but London took the bid and ran with it. Our flows in Tokyo were decent two-way in 10-years and 30-years from Asian banks (skewed to better buying). Overall, the Total Treasury inter-dealer broker volume was 124% of the 10-day average through this morning.