Treasuries End Higher
Prices moved up, accelerating into the afternoon as some key resistance points were breached forcing in more short- covering. One key factor in the day was the fact that the dollar recovered off Friday's lows and then held, giving the shorts no satisfaction.
Falling stocks aided the front of the curve fairly early, giving short-dated treasuries a nice pop, but then there was relatively decent buying of 10-year notes, both in cash and futures, which effectively rendered the curve unchanged, edging only 0.9 basis points steeper into the close.
There were mixed flows in the futures and eurodollar pits with swappers involved both ways and hedge funds were early buyers of front month eurodollars. The 2-year note was unchanged at $26 billion, and caused no market move.