why is the yield up?

[c.chugani]

I thought that with the sell-off in equities, fixed income would rise and push yields lower on the T-note.

Anyone have any idea on why this is not so?

 

[nazzdack]

1) The Fed may tighten?
2) People are lightening up on higher-quality debt because they can't sell lower-quality paper to raise cash?

 

[c.chugani]

Quote from nazzdack:

1) The Fed may tighten?
2) People are lightening up on higher-quality debt because they can't sell lower-quality paper to raise cash?

wow thats all this trading session needs.. a hike in rates.

the second cause does makes sense though.

 

[Klamath]

People are no longer looking at it as a safe haven?

 

[Surdo]

Treasuries Fall on Speculation U.S. to Support Fannie, Freddie
http://www.bloomberg.com/apps/news?pid=20601009&sid=afsyZ_Rt6ULs&refer=bond

 

[dhpar]

Quote from Surdo:

Treasuries Fall on Speculation U.S. to Support Fannie, Freddie
http://www.bloomberg.com/apps/news?pid=20601009&sid=afsyZ_Rt6ULs&refer=bond

with all due respect this is not the main reason. people simply square position before the next week's inflation data.

 

[Surdo]

It was the catalyst that propelled ZB to freefall from 117 to 116 1/2 in 5 minutes.

We were overbought above 117, if I had bigger balls I would have stayed short... but they went back up as fast as they came down!