Bond rally nearing an end?

mcurto,

Do you have any customers that listen to your Squawk over a wireless connection? I'm behind a large corp firewall. Anyone use something like Verizon wireless broadband with a Palm Treo or Blackberry? I don't mind a few seconds delay.
 
Can anyone explain fundamentaly why bonds rallied at the end of the day today?. I know that this rate hike was built into the market, but the fed indicated another hike in the next few meetings.

Regards,
Steve
 
Fundamentally, they will continue to flatten the curve after the refunding and other supply next week if the Fed is expected to go at the next meeting. GCM is calling for about -40 basis points in 2-10's mid-year still, but wants to maintain shorts in long end or small steepeners into the refunding and big CMBS supply in the next month or so. From reading their commentary they have said auctions are dealer driven lately and they tend to reverse into small flatteners after the Refundings. As for the Fed, at this point the key word is data dependency, if inflation readings in any reports, such as ISM tomorrow, are way above expected or above acceptable Fed levels the curve may steepen. Also on the close Goldman was a buyer of about 4000 ten years in the last minute, at 1:59:30, went 13.5 about 1000, 14 bid, got some 14's from Hardy, then balance filled at 14.5, shitload traded on screen, before we know it up to 16 after the 2pm close.
 
Quote from spersky:

Can anyone explain fundamentaly why bonds rallied at the end of the day today?. I know that this rate hike was built into the market, but the fed indicated another hike in the next few meetings.

Regards,
Steve
More...

I've found that shorts tend to cover heading into the monthly labor stats due out Friday. I'm buyin' em for scalp on any sharp falls this week. Tuesday was a good example, as much the rest of week should be as well. Come Friday the only bet I'll have on is one for higher Volatility.
 
gharghur2 / mcurto:

Any comments on price activity here in the 30 year (ZB) 0830 CST currently trading at 112 08.

The solid low of 112 12 - 112 10 that has held for the last week has really been a sore spot for me.
 
This has got to be the most unusual day I've seen in months.

Spike up to 113 10. Then down to 112 03. Then all the way back up to 113 09.

Any ideas/comments?
 
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