John Canavan
John Canavan
bit good people seeing small steady supply today
The announcement today is just a small part of what's going on. We have been seeing a good and steady supply of issuance, and that's going to spook people a little bit from a supply perspective.
deficit downward expected factors june larger revision small suggest trade
The June trade deficit was larger than expected which would suggest -- barring any other factors -- a small downward revision to second-quarter GDP growth.
based damage economic fact fears great head higher hurricane lower prices short term worst yields
Over the short term Treasuries yields will head higher and prices lower based on the fact that economic damage from this hurricane is not as great as the worst fears had priced in.
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You have seen a pretty significant rise in open interest in the Treasury futures market since the middle of last month as prices have declined, suggesting a pretty substantial short base out there, so we've held our footing so far this week.
auctions based difficult draw gets note
It gets the refunding off on the right foot, but it's still difficult to draw conclusions about how well the five- and 10-year note auctions will do based on the three-year auction.
helped pressure stocks
Stocks were also under pressure and that helped out a little.
auction good indirect interest quite
The auction went quite well. There was good interest from indirect bidders,
adds following oil stocks stuck until
That just adds to everything that's going on Friday, so we're just stuck following oil and stocks until then.
front hold inflation keeping lack plus rates
The Fed's keeping rates on hold is a continual plus for the front end and the lack of inflation is what's keeping long rates low.
amount pressure supply
It's still a hefty amount of supply and there will be pressure on the market.
above bit bond consensus developed economic employment fear general looking market numbers recent solid stronger traders turned
Yes, the market developed a fear that employment would be stronger than it turned out to be, but it was still a pretty solid number, above economists' consensus forecast, so in general you're looking at recent economic numbers that have bond traders a little bit concerned.
extended fed inflation period raising rates remains remarkably tame
At the long end, inflation remains remarkably tame because the Fed has been raising rates for an extended period of time.
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Eliminate patronage and wasteful spending. Don't ask taxpayers to dig deeper into their pockets when some county employees, some venders and some suppliers have Joel in their back pocket.
book drove high note yield
What really drove the two-year to the high yield of the day was the two-year note auction, and the Beige Book didn't do anything to help.