10 Jul 2013
Flash: US treasuries eying FOMC – RBS
FXstreet.com (New York) - According to the RBS Research Team, “Treasuries are slightly cheaper this morning as markets await the June FOMC Minutes which could shed a little more light on the Fed's asset purchase plans.”
In addition, Semi-core EU debt spreads are modestly wider and peripherals are too (Italy +7bp, Portugal +9, Spain +11bp and Greece +12bp). On the other hand, Germany had a strong 2-year auction today. Our overnight US Rates activity continues to slow. We had an insurer sell 10's in Asian hours and little else. Prices have moved little in Europe and we had some central bank buying in 3-years and spec selling in 10-years that got some mention. Overnight inter-dealer Treasury volume was weak again at 68% of the 10-day average through this morning, the team notes.
In addition, Semi-core EU debt spreads are modestly wider and peripherals are too (Italy +7bp, Portugal +9, Spain +11bp and Greece +12bp). On the other hand, Germany had a strong 2-year auction today. Our overnight US Rates activity continues to slow. We had an insurer sell 10's in Asian hours and little else. Prices have moved little in Europe and we had some central bank buying in 3-years and spec selling in 10-years that got some mention. Overnight inter-dealer Treasury volume was weak again at 68% of the 10-day average through this morning, the team notes.