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12 Apr 2013
Forex Flash: 10-year US treasuries preach patience for entry levels – Goldman Sachs
FXstreet.com (Barcelona) - With regards to 10-year US treasuries, “We recommend a flat duration posturing here – daily momentum studies and positioning (the market appears a lot less short after last week) lead us to expect a re-test of supports (former support levels like 1.83% in 10-years) in the coming week or two: be patient for a back-up to better entry levels.” Recommends the RBS Research Team.
Treasuries are getting a lift as new fears about Europe resurface. Cyprus' bailout is now up to €23bn from €17bn (gold reserves raided), there's press talk of a second bailout for Portugal and new funds needed for Italy and ESM talks on bank recapitalizations have hit a stalemate as northern states want to limit aid. Our overnight Treasury flows were quiet in Asia but we saw better buying once Europe opened. Total Treasury market inter-dealer overnight volume was 119% of the 10-day average.
Treasuries are getting a lift as new fears about Europe resurface. Cyprus' bailout is now up to €23bn from €17bn (gold reserves raided), there's press talk of a second bailout for Portugal and new funds needed for Italy and ESM talks on bank recapitalizations have hit a stalemate as northern states want to limit aid. Our overnight Treasury flows were quiet in Asia but we saw better buying once Europe opened. Total Treasury market inter-dealer overnight volume was 119% of the 10-day average.