Secondary stabilises, short end bid returns

After softening in the first part of the week, sentiment improved on Thursday afternoon on the expectation that a Greek deal will be struck over the weekend. Activity was mainly concentrated in the two to five year area, and though clients are looking for offers, dealers are generally seeing mixed two way flows across the board. The long end is inactive, but dealers expect renewed interest in the event 10-year yields back up towards the 4% area.