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36 minutes ago, IndyPoolPlayer said:

Don't we already have 30 year Treasuries?

yes. it will be interesting how adding the 20 increases or decreases 10s and 30s.

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19 hours ago, hegemony said:
19 hours ago, IndyPoolPlayer said:

Don't we already have 30 year Treasuries?

yes. it will be interesting how adding the 20 increases or decreases 10s and 30s.

The initial reaction may have started already.  I happened to be trading the treasury futures market when the announcement about the 20s was made.  The 30-year treasury futures dropped significantly more than the 10-year futures.  There was a slight bounce back, but by the end of the day, the 30-year futures had still dropped by 19/32nds of a point while the 10-year futures had only dropped 1/64th.  It seems the market may be anticipating that the 20s will cannibalize the 30s much more than the 10s.

Edited by nemo
Corrected the 30-year drop. It was 19/32nds, not 9/32nds.

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1 hour ago, nemo said:

The initial reaction may have started already.  I happened to be trading the treasury futures market when the announcement about the 20s was made.  The 30-year treasury futures dropped significantly more than the 10-year futures.  There was a slight bounce back, but by the end of the day, the 30-year futures had still dropped by 19/32nds of a point while the 10-year futures had only dropped 1/64th.  It seems the market may be anticipating that the 20s will cannibalize the 30s much more than the 10s.

very interesting. I was guessing that people willing to hold for 10 years at low rates would also be happy holding for 20.

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