Treasury Complex

Bonds On the offer this morning,whereas shorter maturities relatively stable, A few reasons for today’s activity. A handful of block trades in the 5 year ,A heavy IG slate with 30 year maturities, Stocks are trying to maintain a bid as SPX scored a new all time high today, a bit of a rally in oil and thus curve steepening theme .Today’s 7:30 PCE missed expectations but not a surprise as Fridays quarterly PCE was weak,so it is not worried about Inflation ,Month end activity? maybe.But what we know for certain is that the Curve is steepening,look at grid below .Bloomberg article talking about how some Firms are changing their call from a flatter curve to a steeper curve “Supporters of a steepening trade are gathering on the street” Reuters telling us that”bear steepening flows dominate today” So more about the curve then anything else on a quiet day before an event filled holiday Week.

2s30 as proxy for the treasury complex shows a bit of a breakout to the upside

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