EmailBond Market Update
The market at 15:37 ET
| 10-Year: -05/32....1.901%.... GNMAs: .... USD/JPY: 92.23.... EUR/USD: 1.3134 |
Moving the Market
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MBA Mortgage Index: Actual -3.8%, prior -1.7% Durable Orders: Actual -5.2%, consensus -3.5%, prior 4.3% (revised 3.7%) Durable Orders -ex Transportation: Actual 1.9%, consensus 0.2%, prior 1.3% (revised 1.0%) Pending Home Sales: Actual 4.5%, consensus 1.0%, prior -4.3% Fed Chairman Ben Bernanke testifies in front of the House Financial Services Committee Treasury auctions $29B 7-yr notes, draws 1.260% |
Treasuries Reverse to Lows
27-Feb-13 15:37 ET
10-Yr: -05/32..1.901%..
USD/JPY: 92.23..
EUR/USD: 1.3134
Treasuries Reverse to Lows: Treasuries ended on their lows as selling took hold following this morning’s solid durable orders report (headline number missed, but internals were good) and persisted throughout the session. Today's testimony in front of the House Financial Services Committee from Fed Chairman Ben Bernanke was a replay of yesterday's appearance in front of the Sentae Banking Committe. The complex cut its gains ahead of this afternoon’s $29 bln 7-yr note auction, and slipped into the red as equities climbed to fresh highs ahead of the cash close. The auction drew 1.260% and a disappointing 2.65x bid/cover as weak demand from indirect bidders was support by a solid takedown by directs. Selling dropped the long bond a half point to 100 12/32 after overnight buying ran it to a high of 101 24/32. Maturities across the rest of the complex saw more modest losses with most ending just a couple tick in the red. Today’s weakness ran yields up close to 3 bps at the long end with the 10-yr yield climbing to 1.903%. The yield curve ended the session steeper with the 2-10-yr spread widening to 165 bps. Elsewhere, precious metals were hit hard with gold falling $20 to $1595 and silver slumping $0.40 to near $28.85. Thursday’s data slate is full with initial and continuing claims, GDP – Second Estimate (8:30), and Chicago PMI (9:45). Dallas’ Fisher will be at Columbia University in NYC giving his economic outlook (16:30), and Chicago’s Evans will speak in front of the CFA Society of Iowa (20).
