MNI China Daily Summary: Monday, July 1

MNI BRIEF: PBOC To Borrow CGBs In Response To Market Situation

MNI BRIEF: Caixin June Manufacturing PMI Hits Three-year High

MNI: PBOC Net Drains CNY48 Bln Via OMO Mon; Rates Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS MON

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

EZ/UK T-Bill Calendar: Spain, Belgium, ESM Auction on Wednesday

MNI: US MAY CONSTRUCT SPENDING -0.1%

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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5Y Review – Sell-Off Extends With Lowest Bid-To-Cover Since Feb’21

US TSYS/SUPPLY
Homepagemarkets-real-timeBulletMarketsFixed Income Bullets
  • The sell off in Treasuries continues with the $70bn 5Y auction tailing by 1.3bps (largest since Jan) after the 2Y earlier tailed by 1bp (largest since Nov).
  • 10Y yields of note with a breach of 4.52% having only recently cleared 4.50%.
  • TYM4 hit a low of 108-12+ to tentatively clear a key support at 108-15 (May 14 low) after which lies 108-06 (May 3 low).
  • The 1.3bp tail is largest since Jan and compares with 0.4bp tail in Apr or the 0.3bp average tail over five auctions.
  • The bid-to-cover of 2.30x is just below the 2.31x from Jan for technically the lowest since Feb’21.
  • Dealers take 19.52% (highest since Jan) after 15.0% in Apr and 15.8% 5-auction av.
  • Indirects take 65.04% (lowest since Feb) after 65.7% in Apr and 66.3% av.
  • Directs take 15.44% (lowest since Dec) after 19.2% in Apr and 18.0% av.
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  • The sell off in Treasuries continues with the $70bn 5Y auction tailing by 1.3bps (largest since Jan) after the 2Y earlier tailed by 1bp (largest since Nov).
  • 10Y yields of note with a breach of 4.52% having only recently cleared 4.50%.
  • TYM4 hit a low of 108-12+ to tentatively clear a key support at 108-15 (May 14 low) after which lies 108-06 (May 3 low).
  • The 1.3bp tail is largest since Jan and compares with 0.4bp tail in Apr or the 0.3bp average tail over five auctions.
  • The bid-to-cover of 2.30x is just below the 2.31x from Jan for technically the lowest since Feb’21.
  • Dealers take 19.52% (highest since Jan) after 15.0% in Apr and 15.8% 5-auction av.
  • Indirects take 65.04% (lowest since Feb) after 65.7% in Apr and 66.3% av.
  • Directs take 15.44% (lowest since Dec) after 19.2% in Apr and 18.0% av.