© 1982-2022 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial
US TSYS

Not Much To Counter Cheapening

KRW

Won Weakens Back Past 1300

GOLD

Lower In Asia

PHP

Peso Holds Familiar Range

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
Trending Top 5
Topics

Dollar Supported By Sticky Real Yields Whilst Breakevens Crank Lower

US
BulletMarketsFixed IncomeForeign Exchange
  • In a ramped-up version of moves seen yesterday, the 6bp decline in nominal 10Y Tsy yields has been completely carried by a lower breakeven.
  • The 10Y breakeven of 2.41% is off a fleeting low of 2.37% but aside from that is the lowest since early Feb, having fallen more than 20bps from Monday’s intraday high.
  • Meanwhile, real yields sit at 69bps, up more than 10bps since early Monday levels and the highest since Mar-2019 when excluding the fervour just before and after the June FOMC, supporting the dollar in the process.

US 10Y breakeven slides (yellow) and real yields hold firm (green)Source: Bloomberg

124 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • In a ramped-up version of moves seen yesterday, the 6bp decline in nominal 10Y Tsy yields has been completely carried by a lower breakeven.
  • The 10Y breakeven of 2.41% is off a fleeting low of 2.37% but aside from that is the lowest since early Feb, having fallen more than 20bps from Monday’s intraday high.
  • Meanwhile, real yields sit at 69bps, up more than 10bps since early Monday levels and the highest since Mar-2019 when excluding the fervour just before and after the June FOMC, supporting the dollar in the process.

US 10Y breakeven slides (yellow) and real yields hold firm (green)Source: Bloomberg