Free Trial

Belly Leads Rally Again

US TSYS

A flat re-open for T-Notes, dealing just shy of the NY highs, +0-01 at 133-18 (referencing TYZ1).

  • The belly outperformed once again on Monday, with the major benchmarks finishing 1.5-3.5bp richer on the day come the close of cash Tsy trade as the post-Powell rally continued.
  • A block sale of US futures (-7,753, ~$1.484mn DV01) helped stall the rally in the late NY morning, before the space traded to fresh intraday highs as we moved through the afternoon.
  • The move higher came alongside another uptick in equities, with volume subdued given the lack of headline catalysts and a UK holiday.
  • Fed's Mester ('22 voter, hawk) told RTRS that "she is not yet convinced that recent inflation readings will be enough to satisfy the price stability goal the U.S. central bank revamped a year ago."
  • Short-end flow was headlined by a 25K screen buyer of EDZ1 and a ~50K screen buyer of EDU3/Z3.
  • Official PMI data out of China tops the broader docket during Asia-Pac hours. Meanwhile, Tuesday's U.S. docket will be headlined by the latest MNI Chicago PMI print and consumer confidence reading.
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.