US Treasuries open NY higher after overnight mixed flows. In TOKYO, Treasuries kept to a tight range with month-end buying coming into long end Tsys. Japanese accounts bought US 5-year notes, while front-end buying arose too but some Asian selling arose in intermediates and other 10-year selling. Mixed flows arose in sister bond markets with mild Asian profit-taking. In LONDON, Treasuries had edged lower in largely interdealer flows following core EGBs into results of the ECB’s second 3-year LTRO, then Tsys had mixed flows after E529.5B LTRO announcement (800 banks bid), including fast money buying 5Y, 10Y Tsys. Tsys and Bunds improved off the lows around 5:33 a.m. ET after good German 10Y benchmark Bund reopening auction had E3.2585B allotted at avg yield of 1.83%. Bunds extended gains as Greek, Portugese and Irish spreads widened. Leveraged accounts sold some US 10-year notes. Market awaits 10am ET Fed Chairman Bernanke semi-annual econ test to Hse panel, with also Fed outright purchase in 2036-42 Tsys.
StockMarketNews Research Team