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17 Jun 2013
Flash: 10-year US treasuries pause on China bubble concerns – RBS
FXstreet.com (New York) - According to the RBS Research Team, “We expect that the range (2.00% to 2.30% in 10-year US treasuries) trade will continue at least until the Fed announcement on Wednesday, if not beyond.”
Treasury prices were slightly higher to start the week despite solid gains in global stock markets. Fresh concerns about China's debt-fueled growth (Fitch says that China's credit bubble is unprecedented in modern history) may be underpinning safe haven bond prices this morning. Our overnight Treasury flows were subdued in front of this week's Fed meeting. We had an Asian life company buyer of 5-years and an Asian central bank seller of 10-years and not much besides that. Total Treasury inter-dealer broker volume was just 54% of the 10-day average this morning.
Treasury prices were slightly higher to start the week despite solid gains in global stock markets. Fresh concerns about China's debt-fueled growth (Fitch says that China's credit bubble is unprecedented in modern history) may be underpinning safe haven bond prices this morning. Our overnight Treasury flows were subdued in front of this week's Fed meeting. We had an Asian life company buyer of 5-years and an Asian central bank seller of 10-years and not much besides that. Total Treasury inter-dealer broker volume was just 54% of the 10-day average this morning.