This is an archived article that was published on sltrib.com in 2017, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
Treasuries rallied, with 10-year notes headed for their first four-week advance since July, as investors lose confidence that President-elect Donald Trump's first priorities will include fiscal stimulus aimed at spurring economic growth.
The lack of mention of tax cuts or fiscal spending at Trump's press conference Wednesday caught Treasury bears leaning the wrong way, after they pushed yields to the highest in more than two years following the election.
The dollar extended declines against the euro and yen, while stocks fell from record levels.
•10-year yield, down three basis points at 2.34 percent, declined as much as 6.7 basis points to lowest since Nov. 30, below its 50-day moving average (2.319 percent) for the first time since September
• A bullish head-and-shoulders formation is starting to appear in 10-year yields that projects an opening gap at 2.15 percent-2.16 percent, according to Ian Lyngen of BMO Capital Markets; immediate resistance is at 2.29 percent, the closing level from Nov. 29.
• Curve from five to 30 years steepens after $12 billion long-bond sale drew soft demand. Direct bidders, non-primary-dealer investors that place bids with the Treasury, bought 4.5 percent, the least since 2009. Primary dealers took 28.8 percent, up from 26.8 percent.