Free Trial

CPI Beat Est's, Final Policy Anncs of 2021 From Fed, ECB, BoE Next Wk

US TSYS

Rates holding marginal gains in 2s-10s after the bell, bonds steady while the ultra-bond trades weaker. Omicron-variant headlines more positive: CAUSED MILD ILLNESS IN FULLY VACCINATED IN U.S.; ONE VACCINATED PERSON HOSPITALIZED FOR TWO DAYS; NO DEATHS, Bbg.

  • Tsy futures gapped higher after Nov CPI came out slightly higher than est (0.8% vs. 0.7%), algos duked it out as lvls quickly receded to pre-data levels, Equities surged higher (ESH2 +34.5) - see-sawed through the session to near highs late (+30.50 at 3690.25).
  • Orderly trade late morning on with rates gradually paring gains amid two-way positioning ahead next week's FOMC, BOE and ECB policy announcements.
  • No data on tap Monday, Tuesday focus on PPI Final Demand MoM (0.60% prior, 0.50% est); YoY (8.6% prior, 9.2% est) -- and of course the Final FOMC policy annc of 2021 on Wednesday.
  • The 2-Yr yield is down 2.7bps at 0.6604%, 5-Yr is down 1.6bps at 1.2516%, 10-Yr is down 1.4bps at 1.4854%, and 30-Yr is up 0.5bps at 1.8811%.

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.