Boing

Last Update: 30-Jul-10 15:42 ET

10-Yr: +22+/32..2.898%.. USD/JPY: 86.40.. EUR/USD: 1.3053Boing: The market was able to recover to the best levels on the week on the long bond, best since Thurs on the 10s, Mar 2009 on the 5s while knocking around record levels on the 2s. The long end was the power forward here, getting added pump as spreaders unwound from the recent large swing buying the mid-curve against the 30s. The poor to eh data, the week-and-month end activity and sliding stocks all aided the bid while players are so bored and/or lonely they have already begun talking up the jobs report next week on Lollapalooza Fri. They need to be reminded there are a few potential tape-bombs earlier in the week (income and spending, ISMs). The auctions, good, fair and ugly, were out of the way, even though corporate and global issuance is still crowding out the calendar, mostly mid-curve, as they look to get in at the extreme low rates. The rebound in stocks will likely have little spillover unless they can give the run some follow-through next week. The curve was swung back to a flatter stance with the 2-10-yr, with 234.5 area on the 2-10-yr yield spread proving a little sticky, now 235.7. The dollar was under pressure all session with the index backed off to the lowest since late Apr, but getting stalled near the nice, round 81.50 point. The euro has been also spent the latter part of the day stalled near a half point, 1.3050, unable to get much back up after the push to 1.31. The yen's push better also lost some spunk as it flirted with Nov levels with players sniffing for potential intervention. The week ahead has construction spending and ISM (10), while Fed chief Bernanke will speak at a conference (10), and Timmy Geithner will speak on financial regulation late (16).
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