13:25 EDT - The big question is whether $29bln 7-yr sale due Thursday will be another tepid auction like the two-year and five year auctions, or will it turn out to be a pleasant delight? Another lukewarm sale could signal buying fatigue on Treasurys on these ultra-slim yields. Still, rate strategists at Nomura argue that investors might have refrained from bidding ahead of the EU summit because Treasurys could sell off if policy makers release a credible plan. On the other hand, a good auction Thursday could signal that Fed's Twist policy encourages investors into longer maturities. The two-year note is within the maturity range the Fed is selling while the five-year is outside the buying zone from the Twist. (min.zeng@dowjones.com)
(END) Dow Jones Newswires
June 27, 2012 13:25 ET (17:25 GMT)
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