Free Trial

Bullish Outlook

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Participants steered clear of safe haven assets following Tuesday's risk rout, with core FI losing shine as a result. Australian CPI data provided the main risk event of the Asia-Pac session, with ACGBs taking a hit as domestic inflation figures smashed expectations.

  • A brief foray higher allowed T-Notes to show above yesterday's best levels but proved short-lived as broader selling pressure prevailed. The contract went bid as a block but in 5-Year U.S. Tsy futures coincided with geopolitical headlines noting that a Russian ammunition depot caught fire, while China said that its navy vessels tracked a U.S. destroyer transiting the Taiwan Strait. This upswing was capped at 120-18+ and T-Notes turned their tail again amid recovery in U.S. e-mini futures. TYM2 trades +0-04 at 120-05+ as we type, with Eurodollar futures last seen 0.5-3.0 ticks higher through the reds. Cash U.S. Tsys tracked fluctuations in T-Notes, yields quickly regained poise after a brief pullback. They last sit 2.2bp-5.0bp higher, with the curve running flatter. The U.S. docket for today features flash wholesale inventories & 5-Year Tsy auction.
  • JGB futures sales ground to a halt ahead of the Tokyo lunch break but resumed thereafter, with the contract last sitting at 149.34, 2 ticks above previous settlement. Cash JGB yields are narrowly mixed as we type. The sale of 2-Year JGBs saw low price match dealer estimate, with bid/cover ratio moderating to 4.34x from 5.43x at the previous auction. The space showed little to no reaction to the offering.
  • Better than expected CPI figures applied pressure to ACGBs as the data stepped up pressure on the RBA to raise interest rates. Headline CPI growth reached a two-decade high & core inflation breached the RBA's target range, which prompted participants to add hawkish cash rate bets ahead of next week's monetary policy meeting. YM last trades -7.5 & XM -0.5, both are testing session lows. Bills run -17 to +1 tick through the reds. The cash curve has bear flattened as yields sit 0.2bp-9.2bp higher.

To read the full story

Why Subscribe to

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.