Free Trial

Bear Flattening In Sympathy With UK Sell-Off

US TSYS

The Treasury curve is bear flattening to start the week, with global short-end FI selling off in sympathy with UK rate hike expectations being brought forward aggressively.

  • 2-Yr yields hit a fresh cycle high (0.4436%) as the UK short-end blew out (2Y UK yields up most since 2010). The 2-Yr yield last up 4.1bps at 0.4355%, 5-Yr is up 5.4bps at 1.1798%, 10-Yr is up 4.2bps at 1.6125%, and 30-Yr is up 2.1bps at 2.0619%.
  • Dec 10-Yr futures (TY) down 14/32 at 130-17 (L: 130-15 / H: 130-30), just under 700k traded.
  • The session's data highlight is Sept industrial production at 0915ET; we also get NAHB house prices at 1000ET. TIC flows at 2100ET as well.
  • Minn Fed's Kashkari speaks at 1415ET. Earlier, Gov Quarles discussed digital assets (eg cryptocurrencies), nothing on current mon pol.
  • In supply, $93B combined in 13-/26-week bill auctions at 1130ET. NY Fed buys ~$2.025B in 22.5-30Y Tsys.

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.