Treasuries Dip as Equity Gains Continue

The curve steepened sharply on the Fed's rate cut

Fixed income players are clearly giving more credence to 200 basis points' worth of stimulus from the Fed this year, with a vicious curve steepener gaining pace with the continued recovery of equities on Thursday. Capitulation of prices at the long-end of the curve initially contrasted with gains at the front-end, but the June and cash bond fell over 1-1/2 points by the end of trade and dragged the front-end underwater with them.

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