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Friday, 08/29/2014 2:12:58 PM

Friday, August 29, 2014 2:12:58 PM

Post# of 363880
U.S. Treasuries tick up to new session highs continuing to ride support on ongoing and escalating geopolitical issues as size dwindles in pre-long holiday weekend trade.
A batch of mixed data showed sliding consumer spending with a surprise pop in the Chicago PMI and consumer sentiment. The midday news of an increased terror threat in the U.K. was capped by Prime Minister David Cameron's press conference which added to the safety bid.
The 10-year recently traded 2.3298%, eying the week's low yield at 2.32% from an early 2.355% while the 30-year has 3.058% from 3.09% as it aims for the week highs. The two-year has led the latest leg of the rally to recently trade 0.4764% from an early 0.525% and the five-year has waded through 1.62% to trade at 1.6168% recently taking out Thursday's highs from 1.645%.
The curve trade has been edging steeper as positions continue to be unwound with the difference between the yields on the two- and 10-years widened to just under a spread of 1.85 against Thursday's 1.81.

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