Treasury Action: long yields took a dive Treasury Action: long yields took a dive on the very respectable 30-year reopening, which just validated the curve flattening trend, even after the modest concession build in this morning. The 30-year cash yield had backed up from 2.80% lows to highs of 2.875% before slumping under 2.85% again, compared to the 2.848% award rate on the reopened bonds. The 5s-30s spread has narrowed to +122 bp as a result, another 3 bp tighter on the session.
U.S. household net worth sank to $81.35 tln in Q3 U.S. household net worth sank to $81.35 tln in Q3 from $81.49 tln in Q2 in the first decline since Q3 of 2011, according to the Fed's flow of funds report, while household debt rose at a 2.7% annual rate in Q3. This was following a hit to stock portfolios and rising debts that quarter to fund housing and vehicle purchases and the like. Non-financial firms had $1.80 tln in liquid assets in Q3, compared to $1.82 tln in Q2. Stocks netted out with slightly positive returns in Q3 before ramping higher in Q4 following their October-15 "global margin call" low.