Unexpected? Long-term Treasury yields slide after budget deal

|By:, SA News Editor

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.