I thought that with the sell-off in equities, fixed income would rise and push yields lower on the T-note. Anyone have any idea on why this is not so?
1) The Fed may tighten? 2) People are lightening up on higher-quality debt because they can't sell lower-quality paper to raise cash?
wow thats all this trading session needs.. a hike in rates. the second cause does makes sense though.
Treasuries Fall on Speculation U.S. to Support Fannie, Freddie http://www.bloomberg.com/apps/news?pid=20601009&sid=afsyZ_Rt6ULs&refer=bond
with all due respect this is not the main reason. people simply square position before the next week's inflation data.
It was the catalyst that propelled ZB to freefall from 117 to 116 1/2 in 5 minutes. We were overbought above 117, if I had bigger balls I would have stayed short... but they went back up as fast as they came down!