FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Debt Ceiling Headline Risk Overshadows Powell/Bernanke Policy Forum

US TSYS
Treasury futures look to finish weaker for the most part, near the middle of a moderate session range after some late morning volatility tied to debt ceiling headlines.
  • Rate futures extended lows after (10s marked 113-11 low, -18.5, yield rising to 3.7186% high) on carry-over optimism over the last 36 hours that a debt ceiling negotiations to avoid a default were close to an agreement.
  • That was until late morning when headlines hit that GOP negotiators walked out of debt talks with no follow-up scheduled. Punchbowl News' Jake Sherman tweeted ""We're at an impasse," a source involved with the talks tells me. Not one issue, but multiple issues have proven problematic, I am told."
  • The impasse spurred a fast risk-off move as Treasury futures rallied (10s bounced to 114-01.5) and stocks reversed modest gains: SPX falling to 4192.0 low after marking 4227.0 high in early trade.
  • The headlines completely overshadowed headlines of Fed Chairman Powell amid former chair Bernanke at a policy forum scheduled at the same time. Federal Reserve policy is already restrictive, allowing caution about whether more tightening is needed given the lagged effects of past rate hikes, Chair Powell said.
  • "We've come a long way in policy tightening and stance of policy is restrictive and we face uncertainty about the lagged effects our tightening so far and about the extent of credit tightening from recent banking stresses," he said.
  • Markets settled near midrange through the second half, decent overall volumes (TYM>1.75M) tied to a pick-up in Jun/Sep quarterly futures rolls. Focus turns to May 3 FOMC minutes release next Wednesday.
BulletMarketsFixed Income BulletsHomepage
BulletMarketsFixed Income BulletsHomepage

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.