Free Trial
AUSSIE 3-YEAR TECHS

(Z2) Fades Into Weekly Close

AUSTRALIA DATA

Labour Market Focus This Week

FOREX

USD Finds Support In Early Trade

BONDS

NZGBs Cheaper To Start, China Matters Dominate

AUSSIE BONDS

Chinese Support For Property Sector Weighs

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

Another Round Of Notable, Gilt-Inspired Moves

US TSYS

TY futures open around late NY levels, a little shy of their Wednesday peak.

  • Historic Gilt market moves were at the fore again on Wednesday, with the BoE’s “temporary” purchases of longer dated Gilts (stepping in to support the LDI community and promote a return of market functionality) and delay of QT providing a bid for wider core global FI markets.
  • Tsys were 13-24bp richer across the curve as a result, with intermediates leading the rally, pulling the 5-/30-Year yield spread further away from lowest levels of the cycle (albeit still sitting at -25bp), while the 2-/10-Year spread more than reversed the early steepening, closing a little under 20bp off cycle lows.
  • Note that 10-Year yields showed above 4% on several occasions, but failed to meaningfully push through, as was the case in ’09 & ’10 (highlighted previously).
  • The rally helped 7-Year Tsy supply stop through WI, ending the run of tailing auctions.
  • The Asia-Pac docket is light, which will leave regional digestion of Wednesday’s market moves at the fore. Gilt market moves in lieu of the BoE’s first round of emergency purchases will likely set the tone in London hours, with regional and national German CPI also due.
  • NY hours see the final Q2 GDP print, weekly jobless claims and another round of Fedspeak, with Messrs Bullard, Mester & Daly all set to appear. Expect them to stick to the hawkish script, as was the case with Wednesday’s speakers.
240 words

To read the full story

Why Subscribe to

MarketNews.com

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.

TY futures open around late NY levels, a little shy of their Wednesday peak.

  • Historic Gilt market moves were at the fore again on Wednesday, with the BoE’s “temporary” purchases of longer dated Gilts (stepping in to support the LDI community and promote a return of market functionality) and delay of QT providing a bid for wider core global FI markets.
  • Tsys were 13-24bp richer across the curve as a result, with intermediates leading the rally, pulling the 5-/30-Year yield spread further away from lowest levels of the cycle (albeit still sitting at -25bp), while the 2-/10-Year spread more than reversed the early steepening, closing a little under 20bp off cycle lows.
  • Note that 10-Year yields showed above 4% on several occasions, but failed to meaningfully push through, as was the case in ’09 & ’10 (highlighted previously).
  • The rally helped 7-Year Tsy supply stop through WI, ending the run of tailing auctions.
  • The Asia-Pac docket is light, which will leave regional digestion of Wednesday’s market moves at the fore. Gilt market moves in lieu of the BoE’s first round of emergency purchases will likely set the tone in London hours, with regional and national German CPI also due.
  • NY hours see the final Q2 GDP print, weekly jobless claims and another round of Fedspeak, with Messrs Bullard, Mester & Daly all set to appear. Expect them to stick to the hawkish script, as was the case with Wednesday’s speakers.