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

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Treasury Finish on a Strong Note


Conditions were patchy at best on Wednesday, the day after an uneventful FOMC meeting. Yet, gains were pretty substantial along the curve, especially the belly enjoying a flight bid of sorts.

Stocks vacillated in and out of the red, helping bonds to leech some early momentum from their rivals. Rumors of an imminent sovereign ratings downgrade on Germany by S&P helped cement the flight into bonds, however quickly dismissed. An S&P analyst at a conference call on the subject later later expressed some skepticism about the German government's willingness to follow-through with structural/budget reforms, despite upholding the country's stable AAA rating.

A Dutch bank buying in March five-year notes for a leveraged account, combined with the pricing of a $3 billion FHLB 3-year issue to keep a bid kindled under the belly. The March bond closed just off its highs at 110-28 after rallying nearly a point to 111-01 session peak.

With all the focus in the middle maturities again, the wings of the curve scarcely changed. The two-year note and 30-year bond spread widened one basis point to +303 basis points. Neither bunds or the dollar showed much reaction the German rumors, though the euro did slip fifty cents in early New York trade after some selling from the continent.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus