Good morning … I was going to lead with a recap of that better-than-good 20yr auction but I just couldn’t. Skip down below for more on that and generally speaking, the selloff was in fact, a concession, Looking at the selloff in somewhat greater context — 30yy DAILY — I’d suggest we’ve still got some ‘wood to chop’ before indicators such as slow stochastics (bottom panel) suggest long bonds are cheap, screamin’ BUY, but …
Curious Steve, why the 26bp premium for 20yr over 30yr? Lack of liquidity in 20yr?