Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


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.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Markets & Finance

Treasuries End Lower

The latest round of reading the rate-cut tea leaves Friday drove Treasury prices lower and yields higher, after the Wall Street Journal sought to downplay the risk of the larger cut in a Fed-sourced story. At first the curve flattened on losses at the front-end, but the long-end suffered most by the end of the session as the market jumped to the conclusion that "unconventional" Fed tactics were now more remote.

The Wall Street Journal had a banner day, with two articles on the topic of Freddie Mac and Fannie Mae's derivatives practices as well, which helped push out agency spreads. General Motors announced a $10 billion issuance package, which, combined with the policy dilemma and the upcoming 2-year auction, kept the supply calendar crowded and Treasuries squeezed out.

Fed Governor Kohn appeared to endorse the Fed's strategy of greater verbal transparency, especially while interest rates are low. This could hint at some reluctance to test the "zero bound" on rate soon and, combined with a terror threat on the U.S. Embassy in Kenya, may have contributed to some late short-covering.

The September bond closed down 20/32 at 118-18, above lows of 118-00, while the 2-year note and 30-year bond spread steepened 2 basis points to +327 basis points. MMS's Fed survey revealed an even split in the 25-basis-points to 50-basis-points easing camps.

blog comments powered by Disqus