Bonds Hold Near Lows in Slowing Trade


U.S. Treasuries slumped at the low end of its range amid tapering volume late Tuesday, with the the five-year leading while the long bond lagged as equities clawed back some ground. New corporate supply has added drag while a break in the week’s run of appearances by Federal Reserve officials has resulted in some position squaring.

The 30-year has slid to around the 2.95% point versus an early low yield/high price at 2.908%, and a 2.977% close Friday. The 10-year is holding near 2.345% from a 2.3085% high and 2.38% close. The five-year is sitting between 1.85% and 1.84% against a 1.806% high and 1.884% Friday. The two-year was trading around 1.1725% from a 1.135% high and 1.193% close.

New issues added to the calendar include some financials now that they’re out of their earnings blackout period. Morgan Stanley has a benchmark sized offering including a five-year floating-rate notes (FRN), along with 10- and 30-year maturities. Wells Fargo plans a six-year fixed and FRN. There’s a deal from Bank of America with six-year fixed and FRN, along with 11-year and 31-years. Kroger launched a $1 billion 30-years while Regency Centers has a $600 million 10- and 30-year offering.