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13 Jun 2013
Flash: US treasuries face pressure ahead of Fed meeting – RBS
FXstreet.com (Barcelona) - According to the RBS Research Team, “We believe that even as global volatility turns into a support for the Treasury market, rates are vulnerable and may be under pressure into the June 19th Fed meeting and Bernanke press conference.”
Moreover, we recommend buy dips, but selectively against supports (2.30% and strong 2.40%) – don't chase the market. Flows in Asia were central bank buying of 5-years and selling of 10-years, and bank receiving of 10-years. In Europe, we saw fast money selling 10-years to buy the 5-year sector, leveraged selling in 30-years. Total Treasury inter-dealer broker volume was 111% of the 10-day average through this morning.
Moreover, we recommend buy dips, but selectively against supports (2.30% and strong 2.40%) – don't chase the market. Flows in Asia were central bank buying of 5-years and selling of 10-years, and bank receiving of 10-years. In Europe, we saw fast money selling 10-years to buy the 5-year sector, leveraged selling in 30-years. Total Treasury inter-dealer broker volume was 111% of the 10-day average through this morning.