The treasury announced at the beginning of May that it will consider the reintroduction of the 30-year nominal bond. The announcement sent shockwaves through the US bond market. Immediately after the Treasury notification in their quarterly refunding statement on May 4, there was a large sell-off in off-the-run bonds, as investors repositioned their flattening trades.
William Prophet, head of government bond strategy at UBS in Stanford, Connecticut says, “People were long those bonds and were
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