hard to write much more than a quick update when everyone is on vacation…

Good buying of 30s started around Tokyo lunch, continued through European open, at which time there was better paying in USD 30y swaps from bank names and RV accounts paid outright and on spread in USD 5s and 2s5s spread.

With the exception of Spain, peripherals continue to trade wider today, albeit in small moves, and Italian curve continues to send off bad signals. Mid-morning in Europe, looked like a macro sell program went through in both bunds and Treasuries that took us to the lows of the session. Again, volume and interest remained muted at best as we make our way through the end of Summer. Some window dressing in way out peripheral calls came through, similar to the way out put buying we’ve seen in Treasuries this week for the same reason.

Optically, volumes were decent, but it was actually an uptick in calendar roll volumes out of Asia as positions will need to be rolled by COB next Thursday.

No volume, no block trades….everyone on vacation…. And those of us that aren’t are stuck waiting on Jackson Hole.

Back to sleep….