Fixed Income Close
Bonds maintained gains all day as equities and Crude stayed firmly in the red. Demand was strong in Treasury’s auctions of $26bln of 5-month cash management bills and $28bln of 4wk bills.
The 10yr closed up 26 ticks at its high of the day (115-23) near upper trendline support from the rally started July 23. The 30yr moved above its short- and long-term moving averages today, gaining nearly a handle to 116-17, closing a tick off its intraday high. The 2yr added 7 ticks today, while the 5yr was up half a handle.
On the short end, the 4week bill yield fell 3bps to 1.72%, the 3month bill yield was off 1bp to 1.85%, and the 6month bill yield dropped 5bps to 2.02%. The 1yr saw some buying interest as well, its yield down 8bps to 2.17%.