T-notes finished the session firmly in negative territory, pushing the 10-yr note yields higher for the first time in five days printing session highs at 1.8892%. The under-performance in the fixed income market follows the better weekly US jobs data coming in lower than market expectations, allied with a stronger report on the US housing starts. The upward pressure on yields was likely to have been mitigated by the large JPM deal pricing (USD 6bln). Treasuries lost further ground following source comments the BOJ will consider scrapping the 0.1% floor it sets on short-term rates, pledging to buy assets open-ended until 2% inflation is foreseen. Fixed income players fear that the Japanese may sell Treasuries in order to finance the massive asset buying, At the pit close t-notes settled at 131.27+ down 14+ ticks.
Print 20:04, 17 Jan 2013 - Fixed Income - Source: RANsquawk
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