Chi stava spingendo sulla curva (.. dalla parte opposta alla mia ihihihi) è entrato nel panico
quanto mi dispiaze
Long-term US Treasuries trounced after 30-yr shock
(Adds 30-yr bond news, reaction, updates prices)
NEW YORK, May 4 (Reuters) - Long-term Treasury debt prices tumbled in wild trade on Wednesday after the U.S. Treasury stunned the market by saying it was considering whether to bring back the 30-year bond.
Assistant Secretary for Financial Markets Timothy Bitsberger said Treasury would "examine if we have flexibility to issue 30-year bonds while maintaining deep and liquid markets in our other securities and determine if nominal bond issuance is cost effective.".
The Treasury said it was considering semiannual auctions of a 30-year nominal security beginning February 2006. Treasury ceased issuing 30-year bonds in October 2001 and its subsequent scarcity has tended to keep prices relatively high.
The prospect of fresh supply sent the 30-year bond <US30YT=RR> down almost two full points in price, while yields shot up to 4.60 percent from 4.49 percent on Tuesday.
"It's a complete shock," said Sadakichi Robbins, head of global fixed-income trading at Bank Julius Baer.
"It's may or may not happen, and you could argue that the 30-year will find more than enough demand given the global hunt for duration right now," he added. "But an awful lot of people have been playing curve trades and this is going to cause them a lot of pain."
Investors have been making money by betting on a flattening of the yield curve, a compression between long- and short-term yields, which has proven very profitable in recent months. However, with long-term yields now surging, the curve was steepening sharply and forcing people to abandon their flattening bets at considerable loss.
Even the gap between 10- and 30-year yields widened sharply to 40 basis-points, from 31 basis points on Tuesday, having dropped all the way from around 80 basis points late last year.
"I feel sorry for the customers -- Treasury has again caught everyone by surprise," said Dominic Konstam, head of interest-rate strategy at CSFB. Treasury sent the market into turmoil when it first dropped the bond back in 2001.
"For us, it's the right decision, but they could have given people more warning," he added. "The market's reaction is fully justified and yields could rise a lot further given how everyone was positioned for flattening trades."
The rush out of such trades left two-year Treasuries unscathed as investors bought back short-dated debt. The two-year note <US2YT=RR>, was actually steady at 3.64 percent.
In the middle of the curve, the five-year note <US5YT=RR> dipped 1/32, taking yields to 3.88 percent from 3.87 percent. In contrast, the 10-year note <US10YT=RR> lost 12/32, lifting yields to 4.22 percent from 4.17 percent.
CSFB's Konstam also noted that the back-up in longer-term yields would go some way to solving Federal Reserve Chairman Alan Greenspan's "conundrum". He, and other Fed officials, have said it was puzzling why long-term yields had not risen further given how the Fed had hiked short term rates -- the latest being a quarter point rise to 3.00 percent on Tuesday.
Wednesday's economic data were overshadowed by the news on the 30-year, but did show some slowing in the U.S. service sector.
The Institute for Supply Management index of services eased much as expected to 61.7 in April, from 63.1 in March. However, the breakdown was soft, with new orders declining and the employment index dropping to 53.3 from 57.1 in March.
The latter was another blow to those looking for a strong rise in from Friday's payrolls report for April, and provided some support to bonds.
bruto ?
si difende da sè
- ha detto pure: venite ad investire da noi, il denaro costa poco e noi siam piantati come statue di sale ... e si è bevuto un Ricard alla salute di chi finanzia i paesi europei poco virtuosi a tassi ridicoli, perchè anche dell'indisciplina fiscale si è - giustamente - lamentato...quindi grazie a todos 
