US Treasuries have trended lower throughout today’s trade despite expectation of an announcement from the FOMC tomorrow that they will conduct outright treasury buys in the long-end, but with 10s supply weighing on price action today. The earlier 3s offering was relatively lacklustre, with a lower buy-side demand and a small yield tail, although retail buying was noted in the front-end with anticipation of a supply reduction due to the halt of short end sales via Operation Twist. Curve steeping was also seen heading into today’s auction results, with 2s/30s trending higher into the bidding deadline, offsetting some concession at today’s offering. Several risk events remain for treasuries this week, with 10s and 30s supply on Wednesday and Thursday, fiscal cliff discussions and the well anticipated FOMC tomorrow. At the pit close T-notes settled at 133.12+, down 7+ ticks.
Print 20:03, 11 Dec 2012 - Fixed Income - Source: RANsquawk
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