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

Dollar Nearing YTD Highs as Bond Rout Persists

FOREX
  • The bond rout is persisting early Monday, with last week's hot CPI fueling a further pricing-in of aggressive easing from G10 central banks this morning. A handful of sell-side institutions have revised their calls for this week's meeting, seeing a 75bps rate rise to ward off accelerating price pressures.
  • Resultingly, Treasury yields are surging across the curve, putting the 2yr yield at 3.2%, the highest level since 2007. The greenback is following rates north, putting the USD Index on track to test May's best levels at 105.00 - which marked the strongest USD in twenty years.
  • The higher, flatter US yield curve has sapped equity market sentiment, putting US futures deeper into bear market territory as prices continue to chew through the post-pandemic stock rally. This has helped support haven currencies ahead of the NY crossover, with JPY and CHF among the better performing currencies.
  • At the bottom-end of the table, NOK and AUD have been dented by the shakier sentiment, while GBP extends recent weakness on the back of a poorer-than-expected monthly GDP release, with April GDP contracting by 0.3% in what's expected to be a rocky few quarters for the economy.
  • The Monday speaker and data docket is typically empty, with no major data releases. Fed's Brainard makes an appearance later in the day, but the event is not policy-oriented, with the FOMC remaining inside the pre-meeting media blackout period.
Energy BulletsCommodities
Energy BulletsCommodities

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.