Accordingly, the Treasury curve widened, then contracted, as the 2s/30s spread dipped below +150 basis points from +155bp at Tuesday's close. The September bond found traction ahead of 100-15/18 congestive support and forged ahead above 101-00 again, but lost some momentum ahead of the close.
Gains at the long end were furthered by a Fed coupon pass in the area which injected $470 million in reserves, though some had initially made room for the Freddie Mac $6 billion 10-year issue by selling 10s.
Broad dollar strength was notable after the U.K. MPC left rates unchanged and the election loomed tomorrow, which sent Sterling sharply lower and dragged the euro and Swiss franc with it.
A Washington-based advisor report was rumored to signal a Fed bias downshift to neutral. Oil prices tumbled after another jump in inventories. Mixed tech and financial sector pre-Q2 earnings weighed on stocks.