July 20, 2022 19:44 GMT
Rates mildly weaker for the most part after the close, 30Y Bonds outperforming after strong $14B 20Y bond auction (912810TH1) re-open traded through: 3.420% high yield vs. 3.447% WI; 2.65x bid-to-cover vs. last month's 2.60x.
- Early risk-on bid spurred by Russia foreign affairs minister Lavrov headlines: "If the West delivers long-range weapons to Kyiv, geographical objectives in Ukraine will be advanced even further .. from just the Donetsk and Luhansk People's Republics to a number of other territories". Brief rally saw 30YY fall 3.1066% low just tapped 3.1856%.
- Markets gradually reversed course through the first half, however, as Russia's Nord Stream 1 pipeline drew attn for the second day. Russia has no pretext for not resuming gas supplies to Germany via the Nord Stream 1 pipeline in coming days, EU Commission President Ursula von der Leyen said Wed as maintenance on the NS1 turbine, the original Russian excuse for the shutdown, is now ‘in transit’ back from Siemens Canada where the work was bring done.
- Limited react to early sales of U.S. existing homes: down for a fifth straight month in June, declining 5.4% from May to a 5.12M seasonally adjusted annual rate and below market expectations of 5.4M.
- Thursday focus: weekly claims (240k est), Continuing Claims (1.340M est) and Philadelphia Fed Business Outlook (0.8) at 0830ET, Leading Index (-0.6%) at 1000ET.