HALISTER1: 30Y Auction Likely to Result in Small Tail, BMO Says

30Y Auction Likely to Result in Small Tail, BMO Says

(Bloomberg) -- $12b 30Y refunding at 1pm ET “will come near record rich levels,” dealer inventories “are strong,” and no April bond auction has stopped through since before the financial crisis, BMO strategist Aaron Kohli says in April 13 note.
  • While bonds underperformed on 5s30s curve over past month, “recent market action has eaten into that advantage,” and iShares 20+ Year Treasury Bond ETF (TLT US) has seen rapid outflows since March FOMC meeting
  • Positives for sale include short positioning and 30s “richer in repo markets”
  • See Positioning Summary for dealer inventory levels
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
TLT US (iShares 20+ Year Treasury Bond ETF)

People
Aaron Kohli (Bank of Montreal)

To de-activate this alert, click here

UUID: 7947283