Bonds Fall

Treasuries traded lower on Tuesday, with the 10-year Treasury yield climbing to 4.39%

Treasuries traded lower on Tuesday, with the 10-year Treasury yield climbing to 4.39%. Tsies opened lower and traded lower with supply the main culprit. A plethora of european sovereign debt added pressure, with a telecom of Italia 50-year, the proverbial "last straw", according to Informa. Thus, the pressure in BUNDs from the European debt filtered into Treasuries. In addition, the U.S. corporate calendar bulged. But in the absence of any buying ahead of this week's Treasury supply, and the post employment rally clearly now a function of short covering, new shorts were set as the lower prices signaled significant "sales". Bonds led Tuesday's move. A large 2/10 unwind steepened the curve further.

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