T-notes finished in negative territory seeing moves lower from the open as risk on sentiment was observed across the asset classes after commentary on the fiscal cliff indicated that Republicans and Democrats could be nearing a deal. Weakness is seen across the curve, especially at the long end with 2/30s ending the session higher steeper by 4.3bps. Losses in 10y were accelerated after the yield rose above 1.8% and exacerbated after falling through support levels at 132.06+ and 131.31+ . Also contributing to the move to the downside was a lacklustre 5y auction with a yield tail of 0.4bps and demand coming in at the lowest since July. Treasuries continued to be weighed upon by ample supply from the Fed with auctions in 2s, 5s and 10s this week. At the pit close t-notes finished at 131.29+, down 15 ticks.
18 Dec 2012 - 21:11 - Fixed Income - Source: RANsquawk
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