Free Trial

Asia To Assess Bear Steepening

US TSYS

TYH2 deals +0-04 at 112-14+, in line with late NY levels after closing a little off of its session base.

  • This comes after some post-Christmas bear steepening which saw the major Tsy benchmarks finish 5.5-10.5bp cheaper, as markets reacted to the latest wind back of COVID-related restrictions in China (with most of the focus falling on alterations to international travel limitations). Hawkish rhetoric from the ECB during the Christmas break also helped the direction of travel.
  • 2-Year Tsy supply stopped through WI by more than 1bp, with the cover ratio nudging further above its recent average, while dealer takedown slipped further below its own recent average.
  • Lower tier local data failed to impact the space.
  • A block sale of TY futures (-8K) helped the space lower during the NY morning, with follow up block sales in the same contract (-7,590 & -5.5K) helping to extend the move.
  • The summary of opinions from the BoJ’s December meeting headline the Asia-Pac docket. Further out, the NY docket will see the release of pending home sales & Richmond Fed m’fing data, with 2-Year FRN and 5-Year Tsy supply also due.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

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.