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Crude Registers Fresh Highs For The Week

JGBS AUCTION

PREVIEW: 5-Year Supply Due

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Peso Gains Amid Improving Market Sentiment

JGBS

Marginally Cheaper, 5-Year Supply Due

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Bank of America note that "G10 yields rose the most in 15 years last week, in terms of 1-Year z-score. The rise of 2-Year swap rates in G10 was broad-based and the magnitude was more than 3 z-scores for 7 of the 10 rate markets, averaging 3.04. The average rise of over 2.25 z-scores had occurred only three times in the preceding 15 years, most recently in June 2021 when the Fed turned hawkish for the first time in the post-Covid regime. A synchronised sharp rise in global yields on all three historical occasions (Jun '13, Sep '19, Jun '21) were driven by rising U.S. yields amid U.S. bond tapering or tighter U.S. credit. Ahead of the next FOMC meeting in November, where the market anticipates the Fed to announce the start of bond tapering, we expect the USD to be supported and the U.S. to continue to act as the main driver of global FX market."