Trial now
USDCAD TECHS

Heading North

GLOBAL POLITICAL RISK

Modi, AMLO Top Major Economy Leader Poll, Macron Last

AUDUSD TECHS

Under Pressure

EURJPY TECHS

Trend Condition Remains Bearish

Steepening Stalls

US TSYS SUMMARY

A busy morning in global fixed income has seen Tsys gain sharply since about 0500ET, with markets still digesting the Fed's monetary policy framework shift, as well as potential ripples from Japan PM Abe's resignation (with a bit of month-end thrown in).

A long-end Tsy rally has meant curve steepening has stalled over the course of the session, w 5s30s higher but 3+bps off best levels (in contrast to Europe where curves continue to steepen). Equities have been back and forth but one consistent theme all session is USD selling.

The 2-Yr yield is down 1bps at 0.1485%, 5-Yr is down 1.7bps at 0.2957%, 10-Yr is down 1.1bps at 0.7408%, and 30-Yr is up 0.1bps at 1.5103%. Sep 10-Yr futures (TY) up 3.5/32 at 139-02.5 (L: 138-23 / H: 139-03).

The morning sees a decent data slate, with July personal income/spending (0830ET) the highlight. Then at 0945ET we get MNI Chicago PMI, followed 15 mins later by final Aug UMich sentiment.

The Fed's Jackson Hole conference wraps up too, but no FOMC speakers. Most attention will be on next week's pre-blackout appearances by the likes of Clarida, Brainard, and Williams.

NY Fed buys ~$12.825B of short-end Tsys.

MNI London Bureau | +44 203-865-3807 | tim.cooper@marketnews.com
MNI London Bureau | +44 203-865-3807 | tim.cooper@marketnews.com