T-notes settled the session with a net loss of 10 ticks at 133.19, as better than expected macro data from the US, as well as the reduced sense of fear surrounding the Eurozone caused the curve to steepen. Pre-positioning ahead of the latest re-funding announcement by the Treasury on Wednesday also weighed on prices, with 2/10s ending the session on Tuesday steeper by 3bps. Heading into the month-end, supply from the Treasury will now likely result in modest bear flattening of the curve. The bounce off lows after Bernanke failed to indicate on more QE in December and instead reiterated the need to resolve the fiscal cliff debacle was short-lived, with prices resuming the downtrend into the pit close.
Print 20:00, 20 Nov 2012 - Fixed Income - Source: RANsquawk
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