The Treasury market rallied a bit over the last week. It was helped by light supply in previous weeks, with paydowns adding cash to investor accounts, but that changed late last week. The new supply auctioned over that week began to settle on Friday with more settlements coming Monday. That was a depressant late in the week. There should be a little spillover on Monday until all the new supply is put to bed. The pressure will come back on Thursday if the Treasury again sets the size of the 4 week bill at $45 billion.
Foreign Central Banks were buyers last week, while banks and dealers cut back their buying. This report shows where these trends are headed and their likely impacts on the financial markets.