On Thursday, position squaring ahead of employment data, and the U.S. dollar, sparked choppy trading. Prices opened softer, and again, there was no foreign-exchange linked buying, but profit-taking took hold instead. As the European Central Bank and Bank of England left rates steady, further dollar pressure evoked intervention speculation.
In addition, the weekly jobless claims bounce sparked a bid as well, but the uptick stalled as trader booked profits. The see-saw price action persisted. Prices moved into the black on a huge Asian Corporate Bond 5-year buying. Again the uptick lured profit taking. Hedge funds booked major profits in Eurodollars.
Chicago Board of Trade option trades reflected risk adjustments as volumes fell. A "sloppy" TIPS auction and a misinterpreted story about the Ministry of Finance and Bank of Japan sale and and repurchase of Treasuries sent prices lower. But the article was actually a plus for Tresureies, and prices were back in the black by the close.