Supply Buries Treasuries, Curve Flattens Further

Bonds were helped by talk of an Asian central bank buying in the front end of the yield curve

Treasuries were buried under a ton of supply Tuesday and only the bond managed to surface for air. Profit-taking, curve trades, and supply again dominated action. Shorter dated issues were hit the hardest on unwinding of curve steepeners as some of last week's rate euphoria was tempered. And the concentration of supply in the belly of the curve added to the pressures.

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