January 06, 2015 |
|Treasuries posted strong gains as global equity markets came under significant pressure. The complex traded heavy into the cash open, but rallied throughout the day as equity markets in both Europe and the U.S. booked steep losses. Today marked a seventh consecutive gain for Treasuries. |
Strength had the biggest impact on the long end as the 30Y tumbled -9.2bps to 2.605%. The yield on the long bond posted its lowest close since August 2012 while moving into a test of the critical 2.550%/2.600% support area. Action is just 15bps from a record low. The 10Y sank -8.4bps to 2.039%. The benchmark yield broke trendline support near 2.100% on its way to its worst close since May 2013. However, it would take a move below the October 15 low of 1.870% to put in the lowest print since that time. In the belly, the 5Y lost -5bps to 1.568%. Action slid back below the 50 dma for the first time in three weeks and is nearing a test of the key 1.500% area.
Up front, the 2Y eased -2bps to 0.665%. Minor support at the 0.650% level is now in play. Aggressive flattening along the yield curve saw the 2-10-yr spread narrow to 137.5bps, its tightest since December 2012.
|Повна назва організації||The United States of America|