Treasuries Slip After Europe Cuts Rates

The ECB's move triggered a surge in stocks. Lower initial claims data also set up a defensive tone

A rash of rate cuts from Europe, including a reluctant ECB, set up Treasuries for a fall Thursday. A decline in initial claims data and the sharp steepening in the euro-zone yield curve also set up a defensive tone. Equities eased back from their opening highs set on the easier policy environment, providing a little short-covering bid for the June bond, but that move stopped shy of the 200-day moving average at 101-27 and it was all downhill from there.

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