(Re)Balancing Act Bolsters Treasurys Into Year End

One question going into a week in which the tape was painfully thin across the board was whether rebalancing would have a demonstrable effect on markets and/or continue to fuel a reversal of the "buy stocks", "sell bonds" trade that characterized the weeks following Donald Trump's election. Well, it does indeed appear that rebalancing flows played a role on Thursday and also on Friday as Treasury yields dipped to post-FOMC lows. As Bloomberg noted this afternoon, "volumes surged into the future