T-notes trended higher throughout much of the session, supported by price-action in their German peer and with weaker than expected housing data out of the US. Short-covering was also a reason for the upside move in treasuries, particularly the futures, which saw the 10yr yield fall from highs of 1.878% to a low of 1.827%. The Fed conducted their first outright TIPS buy of the new QE program today, which caused 10 BEs trend lower since the results. Despite focus on comments from the White House that the US should raise the debt limit over the long term to avoid uncertainty but Republican pledge recently to raise debt ceiling in the short term is positive, treasuries showed resilience, especially ahead of the House vote on the new bill due tomorrow. At the pit close T-notes settled at 132.08+, up 3+ ticks.
Print 20:04, 22 Jan 2013 - Fixed Income - Source: RANsquawk
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