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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US TSYS
- Treasuries have set new post-payrolls lows, especially at the longer-end, having paid little heed to dovish BoJ commentary overnight re Uchida not wanting to hike amidst volatile markets.
- 2Y yields have met some resistance just above 4.02% (most recently topped out at 4.026%, ~4.12% pre-payrolls).
- The front-end move coincides with Fed Funds futures trimming cut expectations further to 104bps by year-end, but not wanting to move beyond a very rough path of a potential 50bp cut in Sept before two 25bp cuts (albeit Sept down to 44bp).
- TYU4 has seen session lows of 113-02+ (currently 113-04+) in another step closer to support at 112-21 (Aug 2 low).
- In cash space, 10Y yields have returned to levels immediately before payrolls, whilst real yields at 1.81% are now 5-6bps higher.
- Another thin docket today sees broader sentiment in the driving seat (Boston Fed’s Collins on the calendar but not expected to deliver remarks), before focus shifts to the $42bn 10Y auction after yesterday’s relatively well-received 3Y.
10Y real yields (white) lead the climb beyond pre-payrolls levels. Nominal yields (yellow)Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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