Free Trial

Bonds Bounce: Drone Season?

US TSY FUTURES
US Tsy 30Y bonds leading bounce off recent session lows, equities turn lower (ESU2 -6.0 at 4025.0), trading desks citing uptick in China/Taiwan tensions for risk-off move: headlines re: Taiwan fired warning shots at China drone spotted near an offshore island.
  • Tweet from Global Times editor Hu Xijin makes the rounds: "I advise the Taiwan troops not to shoot blindly. It's better to throw stones. If you shoot a drone that ordinary people play with, then that's that. But if you shoot the PLA's drones, you may trigger a war."
  • Yield curves extend inversion with short end lagging the bid:
    • 3M10Y -7.324, 12.465 (L: 7.102 / H: 16.641)
    • 2Y10Y -4.166, -36.655 (L: -36.878 / H: -31.941)
    • 2Y30Y -4.227, -23.169 (L: -23.205 / H: -18.214)
    • 5Y30Y -1.471, -2.862 (L: -2.992 / H: -0.431)

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.