Long-term bonds face pressure from curve unwinding trades, oil prices rebound amid CTA selling, and supply pressures mount ahead of the seven-year auction

智通财经2026/07/28 18:31

Show original

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold. Trade now!

A welcome pack worth 6200 USDT for new users! Sign up now!

Overnight, U.S. Treasuries were boosted by the further drop in oil prices and news of Oman proposing a new joint management plan for the Strait of Hormuz, but during the U.S. trading session, long maturities led the decline as crude oil rebounded from its lows, prompting some profit-taking.
Curve flattening trades were unwound en masse ahead of the Federal Reserve meeting. In addition, dealers made room for today’s USD 44 billion 7-year note auction, putting extra supply pressure on the long end.
CTA funds concentrated their selling of 10-year and long-term bonds during Chicago’s open; several large sell orders from hedge funds followed. One notable sale of 5,000 10-year contracts at the 108-20 resistance level further drove prices lower.
Algorithmic trading initiated selling programs at the long end of the curve after 10-year and long-term yields failed to break through the overnight rebound resistance levels of 4.61% and 5.10%, exacerbating the afternoon decline.
Economic data had a limited overall impact: the trade deficit narrowed modestly, retail inventory growth slowed, and the home price index increased slightly. However, none of this changed the bond market’s short-term pricing logic, which remains focused on supply and positioning factors.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.

Trade now！

U.S. Senator Sanders stated that last year, Amazon (AMZN.US) founder Jeff Bezos sailed a $500 million yacht to Venice, hosted a $55 million wedding, and gave his wife a $5 million ring, while his actual tax rate was less than 1%. Under my proposed 5% billionaire wealth tax, Mr. Bezos would owe $12.7 billion, but his fortune would still remain at $240 billion.

智通财经•2026/08/16 23:41

Spot gold has just surpassed the $4,370.00/oz mark, now quoted at $4,369.82/oz, down 0.14% on the day; COMEX gold futures main contract is now quoted at $4,425.70/oz, down 0.26% on the day.

智通财经•2026/08/16 23:41