Oggi viste in azione banche svizzere e USA in vendita sul Bund , sulla continuazione della falsariga di ieri, la strada è tracciata
US Treasuries drift lower, dollar bounce an excuse
(Adds dollar move, updates prices)
By Wayne Cole
NEW YORK, Nov 18 (Reuters) - U.S. Treasury prices drifted lower on Thursday, in part as a bounce in the dollar quelled speculation of intervention-related inflow and served as an excuse to take profits on recent gains.
The benchmark 10-year note <US10YT=RR> eased 7/32 in price, lifting its yield to 4.15 percent from 4.13 percent late on Wednesday. Yields have spent the last week or so see-sawing in a 4.11 percent to 4.28 percent range.
Treasuries had been aided by expectations that foreign central banks, particularly in Asia, would intervene to buy dollars and slow export-damaging gains in their own currencies. Going on past history most of those dollars would then be parked in U.S. debt -- overseas central banks have already bought a net $198 billion of Treasuries this year.
However, such intervention looked less imminent with the dollar bouncing back past 104.00 yen as bears took profits on short positions.
Traders were anyway inclined to unwind some of Wednesday's gains while awaiting a report on regional U.S. industry at midday. The two-year Treasury note <US2YT=RR> slipped 3/32 in price, taking yields to 2.87 percent from 2.82 percent.
The U.S. Treasury delayed an announcement of next week's two-year note auction while awaiting a vote in the House raising the government debt ceiling. The vote is due late Thursday.
Five-year notes <US5YT=RR> lost 5/32, lifting their yield to 3.50 percent from 3.47 percent. The 30-year bond <US30YT=RR> shed 10/32, leaving yields at 4.85 percent from 4.83 percent.
The November survey of regional manufacturing from the Philadelphia Federal Reserve is closely watched by the market as one of the earliest indicators of industry for the month.
Median forecasts are that the index of business conditions pulled back to 23.5 in November after having jumped over 15 points in October to 28.5. There will be the usual interest in new orders as a leading indicator of demand, and in the employment index which fell sharply in October to 14.1.
Early data showed initial jobless claims dipped to 334,000 from an upwardly revised 337,000 the week before, but this was much as expected and had little impact on the market.
Instead, traders were wondering if there would be a repeat of Wednesday's heavy flows out of euro debt and into Treasuries. Investors were unwinding short Treasury/long bund positions which had proved very profitable as the spread between euro and U.S. debt widened in recent weeks.
"A Swiss and a U.S. bank were seen selling bunds earlier so there's hopes of more flows to come," said one trader at a U.S. primary dealer.
"The market's a bit overbought after yesterday's rally and the inclination is to sell the range for a move back toward 4.20 percent," he added. "But there's also no arguing that recent price action has been impressive given all the strong data and it's got bears reluctant to go too short."
He noted that issuance of investment grade corporate debt this week looked to have hit $24 billion, the highest weekly total of the year so far.
"The demand for yield, any yield, is just insane. People will pay up for the slimmest spread over Treasuries," said the trader. "Demand is just greater than supply right now." ((Reporting by Wayne Cole; editing by Ted d'Afflisio; Reuters Messaging:
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-------------- MARKET SNAPSHOT AT 1607 GMT -------------------------------
Dec Eurodollar <EDZ4> 97.54 (-0.01)
Dec T-Bond <USZ4> 113-05/32 (-04/32)
Dec 10-year note <TYZ4> 112-23/32 (-03/32)
Change vs Current
Nyk yield
Three-month bills<US3MT=RR> 2.10 (+0.02) 2.140
Six-month bills <US6MT=RR> 2.28 (+0.01) 2.333
Two-year note <US2YT=RR> 99-10/32 (-03/32) 2.865
Five-year note <US5YT=RR> 99-31/32 (-06/32) 3.505
10-year note <US10YT=RR> 100-25/32 (-08/32) 4.156
30-year bond <US30YT=RR> 107-22/32 (-11/32) 4.853