UST 2Y Auction Faces Valuation Hurdles, BMO Says
Source: BFW (Bloomberg First Word)
Tickers
SHY US (iShares 1-3 Year Treasury Bond ETF)
People
Aaron Kohli (Bank of Montreal)
Neil Bouhan (Bank of Montreal)
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UUID: 7947283
(Bloomberg) -- While $26b sale at 1pm ET should “go OK” based on recent yield backup and “what we believe are increasing shorts in Treasuries,” from an RV or flows perspective “there isn’t a whole lot that looks attractive,” BMO strategists Aaron Kohli and Neil Bouhan say in note.
Alert: HALISTER1- Primary dealer positions “are looking historically long”
- Yellen speaks at 12:20pm ET tomorrow, which may necessitate a yield premium
- 2s recently have outperformed 3s and 5s on curve
- Real 2yr yields “look somewhat rich”
- Possibility of an unscheduled reopening, which would cheapen the issue
- Flows negative in past month for iShares 1-3 Year Treasury Bond ETF (SHY US)
Source: BFW (Bloomberg First Word)
Tickers
SHY US (iShares 1-3 Year Treasury Bond ETF)
People
Aaron Kohli (Bank of Montreal)
Neil Bouhan (Bank of Montreal)
To de-activate this alert, click here
UUID: 7947283