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AUSSIE 10-YEAR TECHS

(Z1) Off Lows, But Remains Weak

USDCAD TECHS

Still Vulnerable

AUDUSD TECHS

Bullish Price Sequence

US TSYS SUMMARY

Treasuries have held onto overnight gains which were made largely within the space of 1 hour (0200-0300ET) overnight in early European trade. A decent mix of supply, Fed speakers and data ahead.

  • The 2-Yr yield is unchanged at 0.1493%, 5-Yr is down 0.7bps at 0.7969%, 10-Yr is down 1bps at 1.591%, and 30-Yr is down 1.4bps at 2.2853%. Jun 10-Yr futures (TY) up 3/32 at 132-23 (L: 132-19 / H: 132-24.5), volumes elevated (563K) but largely roll related (also 380K TYU1).
  • Overnight, KC Fed's George noted she can't dismiss current pricing signals despite likelihood that inflation is likely transitory; suggests flexible Fed approach (comments had little impact on the space though).
  • Fed speakers today: Richmond's Barkin (0800ET); Chicago's Evans (0940ET), VC Quarles (1000ET).
  • Housing data includes house price purchase index (0900ET) and new home sales (1000ET), while we also get Conference Board confidence and Richmond Fed at 1000ET.
  • Republicans set to meet today to mull a new offer to the White House on infra. Overall tone is that it looks like we're not close to getting a deal. Also in D.C., worth noting Senate Finance Committee confirmation hearings for Tsy officials at 0930ET, incl Nellie Liang as undersecretary.
  • $40B 42-day bills auction at 1130ET, while $60B in 2-Yr Notes sell at 1300ET. NY Fed buys ~1.425B of 10-22.5Y Tsys.
MNI London Bureau | +44 203-865-3807 | tim.cooper@marketnews.com
MNI London Bureau | +44 203-865-3807 | tim.cooper@marketnews.com