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5 Jul 2013
Flash: Treasuries wane across the board – RBS
FXstreet.com (New York) - Treasuries were weaker with the belly of the curve leading prices lower despite a sharp outperformance in Bunds, notes the RBS Research Team.
Semi-core EU debt spreads are roughly 4 tighter as the ECB's dovish forward rate guidance underpins. Peripheral spreads are up to 30bp tighter (Greece and Portugal) on hope for an IMF deal in Greece and positive political moves in Portugal. Asian stocks were led higher by a 2.1% gain in the Nikkei, Our overnight Treasury flows were pretty light but we did see Asian central bank buying in 5-years, leveraged sellers of 3-years (versus Europe), leveraged buying in 30-years (which have outperformed nicely today) and others adding to/doing steepening trades – especially in 10's vs. 30's.
Semi-core EU debt spreads are roughly 4 tighter as the ECB's dovish forward rate guidance underpins. Peripheral spreads are up to 30bp tighter (Greece and Portugal) on hope for an IMF deal in Greece and positive political moves in Portugal. Asian stocks were led higher by a 2.1% gain in the Nikkei, Our overnight Treasury flows were pretty light but we did see Asian central bank buying in 5-years, leveraged sellers of 3-years (versus Europe), leveraged buying in 30-years (which have outperformed nicely today) and others adding to/doing steepening trades – especially in 10's vs. 30's.