--Traders Expect Large Portfolios to Do Asset Allocation Next Wk
NEW YORK (MNI) - Prices of U.S. Treasuries ended Friday higher, though well
off the highs of the overnight massive risk-off rally, after the UK shocked the
financial markets and voted to leave the European Union.
Treasuries saw two-way flows and also some profit-taking and fading of the
Treasuries prices opened Tokyo mildly lower with 10-year note yields at
1.6835% but yields then fell to a low of 1.4750% as the "Leave" vote became
clear. The Treasuries move overnight was described as a circus, and dominated
by MBS convexity buying flows as the 10-year printed 1.50%, and later hit 1.421%
at 1:48 a.m. ET.
Then once such flows finished, better sellers emerged, said traders.