Recap Interest Rate Market Report
Tue 24 Jul 2012 14:30:00 CT
Related Keywords: Interest Rates
After a weak start, September 30-Year Bonds registered a positive outside day reversal into a new contract high. Early weakness in the Treasury market seemed to come in sympathy to a sell off in German government debt, which was put on a negative credit watch late Monday. Sentiment in the market began to turn in the wake of rising borrowing costs in Spain to fresh record highs. Flight to quality buying in US Treasuries gained more momentum following a pair of weaker than expected readings on manufacturing. In fact, a major Bond fund manager commented that the weak manufacturing data served as a sign that US GDP growth could be close to zero in the third quarter. September Bonds rallied to their high of the session following today's $35 billion US Treasury auction of 2-Year Notes. Yields came in at a record low of 0.22%, with a strong bid to cover ratio of four to one.

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