T-notes finished in negative territory after opening significantly lower in response to risk on sentiment observed across the asset classes following a deal to soften the blow of the fiscal cliff reached by US lawmakers late Monday night, further pressure was exerted upon risk off assets following positive ISM data. T- notes have traded in a range throughout the session seeing support at the 131.30 level this mornings low, and resistance at 132.08 the 24th December low; a breach of the 131.30 level would mark a two and half month low. Treasuries have traded lower across the curve but especially in the long end with yields rising 9.4bps. Worthy of note, tomorrow sees the Fed’s first Outright Purchase of 2013 in the maturity range Jan’17 to Sep’17, this is the first of the Fed’s new unsterilised asset purchase programme. At the pit close t-notes finished at 132.04, up 6 ticks.
Print 20:11, 02 Jan 2013 - Fixed Income - Source: RANsquawk
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