Trial now

Ex-Fed Economists On The US Inflation Outlook


Selling Green Vs Blue Call


Interview W Ex-Italy PM Letta On Europe's Debt Pact

Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

Tsys hold mildly weaker levels by Tuesday's close, holding to a narrow range in the lead-up to Wednesday's FOMC policy annc. Some early post-data chop preceded some brief action following the Tsy 20Y bond auction.

  • Choppy post data trade as upward revisions (+0.9%) to Apr softened May retail sales miss ( -1.3%), PPI beat exp (+0.8%). Knee jerk reaction pushed futures near top end overnight range before rates sold off, extending session low slightly. Sources reported decent two-way trade volumes as fast$, prop accts buying 5s and 10s, bank selling 10s and 30s.
  • Tsys futures pared loess after strong $24B 20Y auction re-open: drawing a high yield of 2.120% (2.286% last month) vs. 2.137% WI. Bid-to-cover 2.4 vs. 2.24 in May.
  • Indirect take-up climbed to 62.07% (highest since October 2020) vs. 56.72% in May. Primary dealer take-up falls to lowest in over a year to 17.53% vs. 23.75.51% prior. Direct take-up 20.40% vs. 19.51% prior.
  • Another decent day for corporate issuance with foreign banks issuing $8.8B after Mon's $9.35B.
  • The 2-Yr yield is up 0.8bps at 0.165%, 5-Yr is up 0.2bps at 0.7838%, 10-Yr is up 0.3bps at 1.4973%, and 30-Yr is up 1.5bps at 2.1975%.