Markets

U.S. TREASURIES: Long End Leads Rally After Big Run of Data - 10-Year 2.488%

U.S. Treasury prices ran higher as the day's battery of data rumbled through, adding to the session's bid as traders run from risk. The market had early support from weak Eurozone growth data along with low inflation, while stocks fell.

The 10-year rally took the yield back to trade under 2.48% from 2.565% with traders selling Spanish, Italian, and Portuguese bonds in exchange for U.S issues. The 30-year yield hit 3.30% from 3.395% and the five-years played catch-up to trade at 1.507% from 1.60%

The mash-up of U.S. numbers showed a streak of improved jobless claims figures, better manufacturing in certain reports, but also a utilities-led drop in industrial production. Home builders confidence dropped. The core inflation measure was a bit hotter-than-anticipated, but otherwise the readings were generally in line.

The curve trade was slammed flatter as the long end ran yields lower at a rapid pace. The yield differential between the two- and 10-years fell back to a 2.12 spread, the tightest since July, from a wider 2.18. It's dropped quite a bit from the 2.25 gap to start the week.

Treasury announced it will auction $25 billion three- and $23 billion six-month bills Monday and $13 billion in reopened 10-year Treasury Inflation Protected Securities ( TIPS ) Thursday.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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