Treasury Market Update

April 22nd, 2014 10:50 am | by John Jansen |

The bond market possesses a merdurinous tone today as it probes toward the upper end of the trading range. The 10 year note is a tad shy of 2.75. The shape of the curve is not dramatically different than what is was when I wrote early this morning. The 5 year note has cheapened some more and is now at a cycle wide of 34.5 versus its 2 year and 10 year cousins. I think that at this level of rates and with an absolute yield near 1.75 that buyers will emerge for the issue. We may be undergoing a structural flattening of the curve but even in a bear market one can observe periodic rallies.Dealers report some fast money selling in the belly, macro accounts unwinding flatteners and some establishing tactical steepeners.

 

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  1. 6 Responses to “Treasury Market Update”

  2. By Squints on Apr 22, 2014 | Reply

    Slower than an NBA game in 1994.

  3. By John Jansen on Apr 22, 2014 | Reply

    i am having lunch with friend in the big city

  4. By CLH on Apr 22, 2014 | Reply

    Merdurinous was not on the SATs.

  5. By John Jansen on Apr 22, 2014 | Reply

    but alL the kids who went to princeton know it from the etymology!

  6. By CLH on Apr 22, 2014 | Reply

    Ha! Yes, fairly straightforward, once you think about it. Proof of its rare usage, however, is that a Google search of the word brings up Across the Curve. As always, your posts are both informative and entertaining.

  7. By John Jansen on Apr 22, 2014 | Reply

    Thanks for your kind words.

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