Flash: Buy 10-year US treasuries on dips – RBS

FXstreet.com (New York) - According to the RBS Research Team, “We expect that the range (2.00% to 2.30% in 10's) trade will continue at least until the Fed announcement on Wednesday, if not beyond.”

More specifically, “we recommend buying a dip against 2.30% ahead of the Fed, if we get it.” It was another quiet overnight as Treasuries held a 2bps range throughout both the Tokyo and London sessions. Our flows in Tokyo were light and two-way, and London had a small central bank seller of the front end. Total Treasury inter-dealer broker volume was 74% of the 10-day average through this morning.