real-time news and commentary for investors
Wednesday, Oct 16
Unexpected? Long-term Treasury yields slide after budget deal
- Long-dated Treasurys unexpectedly (to some) post a big rally in wake of the debt ceiling deal, with the 10-year yield tumbling 9 basis points in the past couple of hours to 2.67%.
- The selloff and subsequent bounce-back of 4-week paper can be explained by fears (now ended) of some sort of short-term debt default, but longer-dated paper was under no such threat and might have been thought to rally thanks to the slowdown caused by the shutdown, and then sell off once ended. Go figure.
- The Fed's Beige Book reported slowing growth in 4 of the 12 Fed districts isn't hurting, but the big move in Treasurys occurred before the 2 ET release.
- TLT +1%, TBT -2%.
- Other ETFs: TLH, TLT, IEF, DTYL, DLBL, ILTB, TENZ, ITE, TLO, EDV, VGIT, VGLT, TMF, TYD, LBND, UBT, UST, TMV, TYO, SBND, PST, TBT, DTYS, DLBS, TBF, TTT, TYNS, TYBS, TBX.