Tuesday, June 23, 2015

Bond bears return on hopes of Greece deal - from TRUNEWS

Bond bears were having a picnic Tuesday on the promise of a Greek debt deal, while a megabond offering from Heinz pressured U.S. Treasury prices.

Strategists said the early move higher in yields looked to be a reversal of short-term bullish momentum, which had been driving yields lower. The move faded somewhat in late-morning trade, as buyers stepped in and U.S. yields fluctuated.

But the damage was done. “The technicals still look poor. It’s a nice little turnaround, maybe it’s covering into the auction. Maybe the need or desire to hedge today’s (Heinz) issuance was done by 10 a.m., and once it was done, it was the only source of selling,” said David Ader, chief technical strategist at CRT Capital. “Technically, it does not trade that well.”

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