US T-notes settled in negative territory seeing downside pressure following a less dovish than expected FOMC minutes release. The statement that several FOMC members favoured ending quantative easing before the end of 2013 put pressure on T-notes as participants anticipated lower demand. Earlier in the session T-notes had been at session lows as the yield briefly rose above 1.86%, but since the FOMC release the yield rose to over 1.90% and T-notes dropped went through previous lows as well the 131.28+ level of yesterdays low. Steepening has been observed across in the curve with particular underperformance evident in the long end with the 30yr yield up 6.5bps and the 2/30’s spread wider by 5.8bps. At the pit close t-notes finished at 131.20, down 16 ticks.
03 Jan 2013 - 20:05 - Fixed Income - Source: RANsquawk
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