la foto non basta vogliamo la storia
vedo che il sentiment sui tassi US è nuovamente cambiato
ora devono potare
TREASURIES-Subprime mortgage worries send prices higher
Mon Jul 16, 2007 2:22pm
By Richard Leong
NEW YORK, July 16 (Reuters) - U.S. Treasury debt prices rose on Monday on worries that the deterioration in the subprime mortgage sector will spill over to the broader market and prompt the Federal Reserve to trim interest rates.
The benchmark ABX index, used by investors to hedge subprime mortgage risks, sank to a fresh intraday low. This led investors skittish about securities backed by subprime loans -- made to homeowners with blemished credit histories -- to buy less risky U.S. government bonds.
"The headline risk in the subprime market continues. That market continues to sell off," said Terry Belton, head of fixed ncome and derivatives strategy at J.P. Morgan Securities in Chicago.
The ABX "BBB-" 07-1 index fell to 45 midmarket, below its the prior record low of 48.64 on Wednesday. For details, see[ID:nN16349933].
The benchmark 10-year Treasury note's price was up 10/32 for a yield of 5.05 percent <US10YT>, compared with 5.10 percent late on Friday. Bond yields and prices move inversely.
"The subprime market continues to have problems, which could have a broader ramification for the market," Belton said.
According to short-term rate futures, traders have priced in a higher probability of the Fed trimming interest rates in 2008, compared with Friday's futures.
Earlier, Treasury prices held their ground despite a surprisingly robust manufacturing data in July from the New York Fed, a testament to the subprime premium that has effectively been built into the bond market.