Free Trial

Belly Led Rally Following EU FI Ahead Of Stacked Docket, Earnings

US TSYS
  • Cash Tsys are holding a belly-led rally, with a move that started through Asia trade and continued as Tsys followed core EU FI richer after dovish ECB commentary. The move sees the 2Y having now unwound most of Friday’s U.Mich beat-related sell-off whilst 10Y yields touched fresh lows since June before edging higher.
  • Ahead, earnings season could shape sentiment in the very near term. BNY Mellon beat adjusted EPS expectations and BofA beat FICC trading revenue estimates, whilst Morgan Stanley, Charles Schwab and Lockheed Martin all report pre-market before a stacked docket headlined by US retail sales.
  • 2YY -5.1bp at 4.692%, 5YY -6.0bp at 3.959%, 10YY -4.7bp at 3.760%, 30YY -3.3bp at 3.895%.
  • TYU3 trades 8+ ticks higher at 112-31+ just off a high of 113-02+ having easily breached yesterday’s range to test resistance at 113-03 (Jul 13 high) after which lies a key level at 113-11+ (50-day EMA). Volumes are subdued at 235k.
  • Data: Retail sales Jun (0830ET), NY Fed services Jul (0830ET), IP & Cap util Jun (0915ET), NAHB housing index Jul (1000ET), Business inventories May (1000ET), TIC flows May (1600ET)
  • Bill issuance: US Tsy $50B 42D CMB auction – 1130ET

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.