Flash: US 10-year treasury volumes dip – RBS

FXstreet.com (New York) - According to the RBS Research Team, “Treasuries have extended recent gains with the belly leading the way higher again.”

Our overnight Treasury volume was lightest in some weeks as investors await the latest PCE data and Fed speeches from Dudley, Powell and Lockhart. Italy auctioned a maximum amount of 5-years and 10-years despite the recent run-up of prices with the auction given a boost from a just-announced EU pact on failing banks.

As mentioned, overnight Treasury flows were quite light with some spec short covering and retail buying in EU debt markets noted (semi-core 3-6 tighter and peripherals up to 50bp tighter (Greece). Total Treasury inter-dealer broker volume plunged to just 56% of the 10-day average through this morning.

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