US Treasuries Little Change, Trade Near Bottom of Wednesday’s Range

US Treasuries were little changed and traded near the bottom of Wednesday’s range, dealers said. One shop’s informal poll shows investors split on the next move in 10Ys; either rising to 3.00% or dropping to 2.80%, while several are not looking for a break of the summer range of 2.97% to 2.82%.

Thursday’s volatility for the 10Y is in a range of 2.93% to 2.87%, dealers said. The domestic economy seems to be firing on all cylinders, but every morning brings a new EM headline, dealers added. Thursday morning is about credit markets seizing up in Buenos Aires and the potential of new tariffs on China.

The selloff since month end has been spurred by huge corporate issuance, with a $20 billion Cigna deal now on the table, dealers said. There was some interest seen in 5/30Y flatteners, but 3/10/30Y supply slated for today, may prompt some to wait until next week, dealers said.