This is one day where SIFs and Bonds decouple when people realize what the Treasury is trying to do - It will be damned if the yield curve inverts. nitro
I still wouldn't rule out a invertion yet... Still a lot of folks playing the 2/30. It'd be interesting to bring back the 30yr, especially with balooning deficits. The discontinuation of the 30 made sense once we hit a surplus. It's sad that we could go from surplus and saving to a massive gaping hole of deficit. Perhaps the surplus could have been used to in part 'help' the problem of social security, but such foresightedness is lacking now. -c
I read this as a "bail out the pension funds" program since they are the ones that are stressed and need long dated paper..... all the debt rollover talk is bullshyt
Nice roundtrip today in the 30 YR. Where do you think Uncle Alan's GLOBEX machine is? I bet he has a snazzy Quotrek with Bluetooth in that briefcase.
notice that Big Al got the "inflation is well contained" statement added since he knew the 30 year trial ballon was today... way to go Al.............
MARKET TALK: Long Bond Falls As Reissuance Possible 1301 GMT [Dow Jones] Cash 30-yr bond plummets, down 4 points with yield up 24 basis points to 4.75% as Treasury says considering whether to start reissuing 30-yr bond, will let markets know Aug 3, option may be semi-annual bond as of Feb 2006.
Bring it on baby. As for surpluses, those were simply a function of our bubble economy in the late 90's and excessive tax collections which no longer exist since that money remains in our pockets through tax cuts. It was nuts on the floor today, cash 30-yr was down about 5 points at its lows and the futures traded to 113-15. Heard some curve trader got crushed today, sold 1000 NOB's 1:1 ratio on the low of the day in the Bond. Nice little quiet rally rest of the day. This definitely makes things more interesting with putting on yield curve trades at this point, must be very CAREFUL.