US Treasuries prices opened New York higher, cash 10-year note at 2.005%, after UK session gains. In TOKYO, Treasuries declined mildly, but then Japanese names did dip buying in longer-dated Tsys. Asian accounts also bought the dip as cash 10-year notes looked cheap, while US fast money covered 10Y shorts. Fund managers bought 5Y notes. Some light Asian selling arose in long end. US sister bond markets saw mixed flows. US swaps drew various receiving flows. In LONDON, Treasuries moved up from the start, reflecting the German Bund rally. German Bunds gained amid risk-aversion buying after European banks deposited a record amount at ECB, plus Spanish debt spreads widened as PM Mariano Rajoy upped 2012 budget deficit goal to 5.8%. Bunds aided too by much weaker -1.6% M/M German retail sales, plus as Eurogroup decided to hold back half of Greek’s E130B bailout funds Thursday until satisfied Greece did 38 austerity moves it agreed to. European stocks indexes and US stock index futures both weaker.
StockMarketNews Research Team