Free Trial

Bonds Lead Rebound After BOE Bailey Comments

US TSYS
Tsy 30Y Bonds leading rebound off overnight lows, making new highs at the moment after BOE Bailey comments not committing to rate hikes.
  • Balanced comments not overtly dovish but contrast to more hawkish stance from other central banks: "At this stage, I would caution against suggesting either that we are done with increasing Bank Rate, or that we will inevitably need to do more. Some further increase in Bank Rate may turn out to be appropriate, but nothing is decided."
  • Jun'23 Tsy 30Y futures, USM3 trades 125-12, +5 (30YY 3.8995%), TYM3 111-19 -2 (10YY 3.9123%). TUM3 lagging -1.38 at 101-26.25 (2YY 4.8160%).
  • STIR: Fed funds implied hike for Mar'23 at 30.1bp, May'23 cumulative 56.1bp to 5.138%, Jun'23 74.5bp to 5.321%, terminal at 5.415% in Aug-23-Oct'23 off 5.43% highs.
  • Data ahead: S&P Global US Manufacturing PMI (47.8, 47.8) at 0945ET; Construction Spending MoM (-0.4%, 0.2%) and ISMs at 1000ET: Mfg (47.4, 48.0), Prices Paid (44.5, 46.5).
  • Fed speak: MN Fed Kashkari, moderated discussion, MN Fed livestream at 0900ET
  • US Tsy auction: $36B 17W bill auction at 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.