Back
19 Jun 2013
Flash: 10-year US treasuries brace for FOMC impact – RBS
FXstreet.com (New York) - According to the RBS Research Team, “We look for Bernanke to advance the conversation on tapering, but not any further than the market already has.”
Moreover, “we recommend scaling in against 2.30% (with ammo for a move to 2.40% - your closing stop) – don't chase lower yields on a snap rally. Past today, we see a 2.06-2.30% range, with 2%-2.40% at the wides. Going forward markets will heavily examine data in order to adjust pricing and the timing of tapering.” the team adds. Our flows were Asian banks selling 30-years and CB buying 7-years. Total Treasury inter-dealer broker volume was 58% of the 10-day average this morning.
Moreover, “we recommend scaling in against 2.30% (with ammo for a move to 2.40% - your closing stop) – don't chase lower yields on a snap rally. Past today, we see a 2.06-2.30% range, with 2%-2.40% at the wides. Going forward markets will heavily examine data in order to adjust pricing and the timing of tapering.” the team adds. Our flows were Asian banks selling 30-years and CB buying 7-years. Total Treasury inter-dealer broker volume was 58% of the 10-day average this morning.