Treasuries hold near day’s price highs after opening NY higher, 10Y yield is at 1.988%. IN TOKYO, Treasuries traded lower in ranges, light two-way flows described in volume
described at around half recent average. Initially intermediate selling arose on higher Asian stocks, with Asian real money selling 7Ys & 30Ys. But then Japanese buy-and-hold accounts bought 7Ys & back end. China March new home prices declined, first in nearly 3 years. In LONDON, Tsys drew initial upside support as core EGBS gained, but Tsys at first did not break out of range amid Japanese accounts’ buying in 10-year notes, and spread product-tied bid in Tsys. US names’ trading desks did mild selling, with some central banks selling 10Ys, 10Y futures sales too. Then Tsys gained with German Bunds on weaker continental European stock indexes, decent German 2Y Schatz reopening in 2way flow. Tsys aided as Italian, Spanish banks shrs declined. Fast money bought US 30Ys while older 10s bought. Gilts hurt as BOE mins show Posen dropped easing call.
EasyForexNews Research Team