Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Markets & Finance

Treasuries Slide After Auction


The bond market was mired in a typically lackluster, pre-auction trade on Tuesday and prices closed modestly lower as the Treasury kicked off its $32 billion Q1 refunding operation.

The $11 billion, reopened five-year auction was the main focus of the session, and the morning was spent setting up for the auction. Treasuries actually opened the day on a slightly firmer note, with the bond extending Monday's gains slightly. But, a report from the Bond Market Associations's (BMA) Primary Dealer Committee, which recommended continued issuance of the 30-year bond for "as long as practical," knocked the bond lower and provided a good excuse for traders to build a concession into the five-year sale.

Remember, it was the BMA's Advisory Committee's informal suggestion for termination of the bond that has led to recent long-end outperformance. The bond eventually corrected from its lows after the Challenger layoff report posted record planned job cuts. But the weight of supply left the entire curve sluggish into and following the auction. The five-year note auction met its rather mediocre expectations and thus had little impact.


The Aging of Abercrombie & Fitch
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus