Abbreviated End of Day Wrap Up

October 31st, 2013 9:16 pm | by John Jansen |

The belly of the Treasury curve took the brunt of the sell off today. Observe various butterflies (2s 5s 10s; 5s 7s 10s; and 5s 10s 30s) and each cheapened by about 2 basis points or a tad more than that. So the sector which had registered the most improvement recently suffered some retracement of those gains.

Tomorrow brings the ISM data and car sales. I think the next big data point is the employment report on November 8. The market has a heavy tone and I can see 10s approaching support around 2.60 percent. On the low end of the range Fibonacci constrained 2.47 percent should provide significant resistance and it will take new information to coax buyers in at that level.

Dealers reported mixed flows today. It was month end and dealers reported index buyers of the 5year through 10 year sector. Central banks were active buyers of 7s and 10s.Fast money clients bought 10 year paper and real money sort safe sanctuary in 2s and 3s.

Have a great evening.

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