false breakout, no good, but I'll give bulls a little more time.
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BULLET: US TSYS/30Y: Treasuries spiked higher after the......
US TSYS/30Y: Treasuries spiked higher after the strong 30Y auction, then saw
post-auction redistribution sales and profit-taking at the highs, and then muted
two-way flows ever since. FTN Financial's Jim Vogel added the "rapid buying in
10s has been unable to keep up with the momentum that took 30s as low as 3.21%,
reflattening the 10s/30s curve." He adds that "after strong initial buying
volumes to start the day, light selling prepped the long end for the auction.
Net for the day, however, the 10-yr has gained more technical support using
volume-based analysis." He added that 2-year and 3-year notes "also enjoy a
better technical position as credit-adjusted rates are down on lower inflation
concerns. Real interest rates are unchanged." Vogel added the Fed bought $1.4
billion in old 7-year notes this morning "as QE continues creaking to a close."
this pullback may have small legs, then we'll see.
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2 legged pullback could be over. now 2nd test of the day high, key time.
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