Halister News

(Bloomberg) -- “Unlike stocks, bonds no longer need the promise of upside potential to hold their position -- a major change from early February and an important takeaway from this week,” as “rates can be afford to be data dependent,” FTN strategist Jim Vogel says in note.

• Other observations from strategist morning notes:
• BMO (Aaron Kohli): “Lack of a stronger response from the Treasury market given the risk moves suggests to us that the month-end buying effects are already having an impact”
• Marty Mitchell (independent): Yday “month-end related buying contributed to the bid in Treasuries with some index buyers getting a head start,” and “it was a belly-led bid throughout the day in a session where the bond market disassociated itself from oil and stocks”
  • “While the moving averages have crossed positively on oil and stocks, they have not yet crossed negatively on the 10yr,” so “for that reason, discipline suggests that buying on dips in the bond market remains the preferred strategy”
• RBS (John Briggs): “Treasury investors, here and abroad, will need an accumulation of evidence to be convinced that the market volatility of 2016 has abated, and that the economy has withstood its negative implications”