Treasuries See Historic Rally
22-Sep-11 15:49 ET
10-Yr: +1 11/32..1.720%..
EUR/USD: 1.3475Historic Day
: Today was another historic day for the Treasury complex as yields in all but the 30-yr tumbled to record lows on global growth fears and the European sovereign debt crisis. The 10-yr yield briefly slide below 1.70% before ending the day at a record low close of 1.715%. A gain of more than four points in the long bond was responsible for its yield plunging 25 bps to 2.786% and to its lowest level since January 2009. The 30-yr yield is now just more than 25 bps above its all-time low of 2.519%. Severe flattening of the yield curve saw the 2-10-yr spread tighten 17 bps to 150.5 to its flattest level since January 2009.
Meanwhile, precious metals will finish near their worst levels with gold at $1734 and silver near $35.80. There is no data on Friday.
The Fed’s Permanent Open Market Operations continue with the buying of $0.50-1.25 bln worth of 2021-2041 maturities.