• EconMatters
    08/27/2014 - 21:30
    Investors in European Bonds are running over each other all in an effort to front run what the Big Banks have been begging the ECB to begin a bond buying program.  It is hilarious as ...

2s10s

2s10s
Tyler Durden's picture

Treasury 2s10s Curve Steeper Than Pre QE Announcement





Things for the Treasury sure aren't looking pretty. With the 10 year about to break 3% outright, the 2s10s chart has just passed pre-Quantitative Easing levels. With Treasury supply really starting to ramp up, this could be a bad sign for agencies and mortgage rates. This happens as the TIPS auction is largely oversubscribed. Seems that the market is happy to jump over the next 2-3 years of deflation and is looking straight at 2013.

 
Tyler Durden's picture

Treasury 2s10s Curve Steeper Than Pre QE Announcement





Things for the Treasury sure aren't looking pretty. With the 10 year about to break 3% outright, the 2s10s chart has just passed pre-Quantitative Easing levels. With Treasury supply really starting to ramp up, this could be a bad sign for agencies and mortgage rates. This happens as the TIPS auction is largely oversubscribed. Seems that the market is happy to jump over the next 2-3 years of deflation and is looking straight at 2013.

 
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