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 Finish Sharply Lower

Treasuries were tarred Wednesday and feathered Thursday in the wake of confusion over the Fed's schizo policy statement. A dip in jobless claims, stock gains and a record dollop of corporate supply finished the job, with yields backing sharply higher for the second day running. First-quarter GDP was revised down to 1.4% (from 1.9%), but initial jobless claims plunged 22,000 to 404,000, sparking some hope that the economy was turning the corner on this lagging indicator.

Most Fedwatchers took the Fed's dovish line at face value that rates would remain low for longer than necessary while deflation remained a threat, but the bond market put Fed credibility in the penalty box for raising expectations via open mouth policy and then delivering a stingier cut. The shakeout from the ensuing long-squaring permeated the fixed income markets. General Motors priced a $17 billion multi-tranch issue, which preoccupied traders trying to meet strong demand while crowding out government paper.

The September bond closed 1-24/32 lower at 117-02, while the 2-year note and 30-year bond spread closed one or two basis points tighter at +316 basis points. Losses were most pronounced in the belly of the curve, due to mortgage-related negative convexity selling. Agency spreads tightened after Fannie Mae announced a debt buyback.

blog comments powered by Disqus