HALISTER1: U.S. Treasury Curve Flattens; ANZ Sees 10s at 1.60% by Year-End

U.S. Treasury Curve Flattens; ANZ Sees 10s at 1.60% by Year-End

(Bloomberg) -- Long-end Treasury bonds leading decline in yields, with 30-year yield down 4 bps at 2.46%.
  • Ten-year yield falls 3 bps to 1.74%, while 2-year yield down 2 bps at 0.84%
  • “We’ve gone a little more bullish” on bonds, says ANZ senior rates strategist Martin Whetton in Sydney
  • “We didn’t get a more hawkish Fed last night,” Whetton says; long-end supply is done for the moment after debt auctions of Australia, Japan, U.K., South Korea, and Spain
  • Says tomorrow is the last day for funds to comply with the U.S. MMF regulations, so that should at least take a bit of heat out of funding markets; there’s probably a bit of bids for dollar bonds as a result
  • Sees 10-year U.S. yield at 1.60% by year-end
  • December 10-year bond contract up 10+ ticks, most since Sept. 14 to 130-04+
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Martin Whetton (Australia & New Zealand Banking Group Ltd)

To de-activate this alert, click here

UUID: 7947283