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Treasury Prices Rise Higher
07/29/2011
Despite the fact that a government shutdown is becoming increasingly likely, treasury prices are moving higher this morning. Most feel that a default on government debt is not imminent, as the Treasury has announced that bondholders would be first priority. Additionally, the Aug 2nd estimate may have been a tad early due to higher than estimated tax revenues. A slew of 8:30 disappointing economic releases added fuel to the already surging treasury market this morning. Lower than expected GDP and Core PCE reports have added to the recent flow of gloomy economic data. Currently, the 10yr yield is at 2.880% (2.953% yesterday) and the 2-10 yield spread is at 259bps, flatter by 3bps since yesterday morning.
