Traders Taking Action on the Lond End of the Treasury Curve

To sharpen the image simply click on it, to return to the text click back page. If you look at the chart on the bottom you can see that the differential price between the 30yr. treasury futures and the 10yr. treasury futures has narrowed sharply since the beginning of the year. Today around mid session we sawsubstantial flows coming into the market buying the bonds and selling the 10yr. note on what is called a NOB trade. As the initial alert, upper set of dials above show around mid morning dealers were selling the 10's and buying bonds at a differential price of 14.5 ticks, which is 1 tick less than where the market had settled Monday. At the time of this trade bonds were being bought at 12120.5 which was down 3.5 ticks on the day, at the same time the 10's where being sold at 121'06 which was down 2.5 on the day, so the differential price netted out to down 1 on the session. Later on as bonds started to out perform 10's and another dealer bought bonds at 121'30 up 6 ticks on the day while selling 10's at 121'10 which was only up 1.5 ticks on the day. The clockwise movement on the spread dial shows the curve indeed started to flatten out as dealers were betting on, as the differential price widened to 19.5 tics on this trade. As of the close of the session the differential price was continuing to widen. To get accutic alerts and therefore be able to see these typed of dynamic flows go to www.accutic.net.