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CROSS ASSET

Commodity-Tied Dollar Bloc Leads

JGBS

Cheaper On Wider Impetus

AUSSIE BONDS

YM Off Lows, Trouble Staying Offered In Wake Of GDP

FED

VIEW: BNP Paribas: Faster Tapering

US EURODLR FUTURES

Some Light Selling Seen

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Treasuries have traded within Thursday's ranges for the most part overnight, with 10 and 30Y yields retracing from recent highs. The curve is a little flatter, with short-end yields anchored.

  • A few catalysts weighed in Asia-Pac hours (incl Evergrande paying a US$ bond coupon that had been missed), but headlines were mainly risk-off (Sino-US tensions over Taiwan, equity weakness, poor UK retail sales data). European PMIs were mixed.
  • The 2-Yr yield is down 0.1bps at 0.4534%, 5-Yr is down 0.6bps at 1.2336%, 10-Yr is down 1.9bps at 1.6819%, and 30-Yr is down 2.8bps at 2.1199%.
  • Dec 10-Yr futures (TY) down 3/32 at 130-03 (L: 129-31.5 / H: 130-07.5)
  • Fed Chair Powell speaks on a panel at 1100ET - he's the last scheduled FOMC speaker before the pre-Nov meeting blackout, so it bears watching for any final guidance ahead of a very likely taper announcement in two weeks' time.
  • We also hear from SF Fed Pres Daly at 1000ET (on climate change risks).
  • The data highlight is US October prelim PMIs at 0945ET.
  • NY Fed buys ~$6.025B of 4.5-7Y Tsys.