Free Trial

A Corrective Bear Steepening As Sentiment Firms

  • Cash Tsys have seen a modest sell-off with most of the move coming shortly after open. It follows significant rallies over the past week and a half, after 2Y yields touched highs of 2.85% (May 4) and the 10Y highs of 3.20% (May 9) before sliding on growth concerns.
  • 2YY +1.9bps at 2.580%, 5YY +3.1bps at 2.852%, 10YY +4.9bps at 2.897% and 30YY +7.2bps at 3.066%.
  • TYM2 sits 18 ticks lower at 119-14 on below average volumes in what’s seen as a corrective cycle this week amidst a primary downtrend.
  • Fedspeak: Kashkari (’23 voter) at 1100ET and Mester (’22) at 1200ET.
  • Data: Double inflation-related hit with int’l trade prices (0830ET), where non-oil imports of note to see if USD strength weighs further after weak CPI apparel, and preliminary U.Mich inflation expectations for May.

To read the full story



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.