6 Jun 2013
Flash: 10-year US treasuries a buy on dips – RBS
FXstreet.com (Barcelona) - According to the RBS Research Team, “We stay in 'buy dips' mode for Treasuries even though overall confidence is low as market technical signals (and policy signals from within the Fed) diverge.”
Ultimately, we look for a 2.06% to 2.235% range in 10-years into Friday's nonfarm payroll print. Treasuries are modestly higher and the curve flatter as fears rise over the emerging markets and peripheral Europe. Our overnight Treasury flows were very light with paying in 7's seen in Asian hours and Asian central bank buying in 3's and levered buying in 10's seen in Europe's AM session. Total Treasury inter-dealer broker volume was a mere 53% of the 10-day average.
Ultimately, we look for a 2.06% to 2.235% range in 10-years into Friday's nonfarm payroll print. Treasuries are modestly higher and the curve flatter as fears rise over the emerging markets and peripheral Europe. Our overnight Treasury flows were very light with paying in 7's seen in Asian hours and Asian central bank buying in 3's and levered buying in 10's seen in Europe's AM session. Total Treasury inter-dealer broker volume was a mere 53% of the 10-day average.