Quotes from Lloyds Bank
- As we approach tomorrow's ECB meeting, Friday's NFP/UNR/AHE and the 18 March FOMC, US Treasuries are likely to be in the crosscurrents of position-squaring, on the one hand, and of today's data releases, on the other.
- While recent price action was undoubtedly 'bearish', with 10y UST yield succeeding in moving back above 2.1% and the 5s30s yield spread trying to breach 110bp, it is unclear how much directional conviction there is behind the selling (albeit Eurodollar greens and blues have retraced about 10bp so far this week), so that the potential impact of ADP statistics is difficult to assess.
