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26 Jun 2013
Flash: US 10-year treasuries receive heavy flows – RBS
FXstreet.com (New York) - US Treasuries were higher this morning with Bunds outperforming by 2bp. – there were more 'calming' comments from European/UK central bank officials (Draghi, Myles and Tucker) that spurred widespread buying in EU debt markets, notes the RBS Research Team.
The belly of the curve has led the way higher despite today's 5yr auction. EU spreads are tighter with semi-core up to 6bp tighter; peripherals up to 10bp tighter, all backed by solid buying. Moreover, the metals markets have been crushed with Gold, Silver and Copper all seeing significant losses (Gold and Silver fell to the lowest levels in almost 3yrs while Copper dropped 1.5%). Asian stock markets were mixed,
According to the RBS Research Team, “Our overnight Treasury flows saw heavy receiving in 10-year during overnight hours and that activity underpinned the Treasury market into the European session. More recently we had leveraged sellers of 10-years, Total Treasury inter-dealer broker volume was 114% of the 10-day average through this morning.”
The belly of the curve has led the way higher despite today's 5yr auction. EU spreads are tighter with semi-core up to 6bp tighter; peripherals up to 10bp tighter, all backed by solid buying. Moreover, the metals markets have been crushed with Gold, Silver and Copper all seeing significant losses (Gold and Silver fell to the lowest levels in almost 3yrs while Copper dropped 1.5%). Asian stock markets were mixed,
According to the RBS Research Team, “Our overnight Treasury flows saw heavy receiving in 10-year during overnight hours and that activity underpinned the Treasury market into the European session. More recently we had leveraged sellers of 10-years, Total Treasury inter-dealer broker volume was 114% of the 10-day average through this morning.”