Free Trial
USDCAD TECHS

Impulsive Rally Extends

US TSYS

Late Eurodollar/SOFR/Treasury Option Roundup

EURJPY TECHS

Price Is Below The 50-Day EMA

US

Late Corporate Credit Update

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

Fed's Work Far From Done

US TSYS

Treasury futures trading session lows after the bell, curves bear flattening with heavy selling in short end (TUU2>600k, FVU>1.13M, TYU>1.78M), 2YY back over 3.0% to 3.0814% high vs. 2.8154% early low, 2s10s hits inverted low of -35.531.

  • Rates reversed early support/stocks gained on relief rally after House Speaker Pelosi's safe landing in Taiwan. Brief negative correlation to rates evaporated in the second half as trifecta of Fed speakers (Daly, Mester, Evans) reminded markets inflation is too high and 75bp hike in Sep not off the table.
  • SF Fed Pres Daly stating the Fed's "work is far from done, so we are still resolute and completely united on achieving price stability"; Chicago Fed Evans: "Fifty is a reasonable assessment, but 75 could also be okay" for Sep FOMC; Cleveland Fed Mester: prices are only cooling down "if you squint" and in some pockets.
  • Earlier Data: Job openings fall by more than expected in June to 10.698M (cons 11.0M) after a marginally upward revised 11.3M in May. Pushes the ratio of job openings to unemployed down to 1.81, the lowest since Feb off the March high of 1.99.
  • Pick-up in data for Wednesday: S&P Global US Services/Composite PMIs (47.0, 47.5 respective ests), Durable Goods Orders (1.9% est), Factory Orders (1.2%), ISM Services (53.5 est)
  • Current cross assets: spot Gold reversed direction -9.50 at 1762.67, Crude mild gain: WTI +0.37 at 94.26, stocks marginally lower ESU2 -13.5 at 4107.0
  • Currently, 2-Yr yield is up 11bps at 2.9796%, 5-Yr is up 10.2bps at 2.7365%, 10-Yr is up 7.9bps at 2.6522%, and 30-Yr is up 2.8bps at 2.9421%
257 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.

Treasury futures trading session lows after the bell, curves bear flattening with heavy selling in short end (TUU2>600k, FVU>1.13M, TYU>1.78M), 2YY back over 3.0% to 3.0814% high vs. 2.8154% early low, 2s10s hits inverted low of -35.531.

  • Rates reversed early support/stocks gained on relief rally after House Speaker Pelosi's safe landing in Taiwan. Brief negative correlation to rates evaporated in the second half as trifecta of Fed speakers (Daly, Mester, Evans) reminded markets inflation is too high and 75bp hike in Sep not off the table.
  • SF Fed Pres Daly stating the Fed's "work is far from done, so we are still resolute and completely united on achieving price stability"; Chicago Fed Evans: "Fifty is a reasonable assessment, but 75 could also be okay" for Sep FOMC; Cleveland Fed Mester: prices are only cooling down "if you squint" and in some pockets.
  • Earlier Data: Job openings fall by more than expected in June to 10.698M (cons 11.0M) after a marginally upward revised 11.3M in May. Pushes the ratio of job openings to unemployed down to 1.81, the lowest since Feb off the March high of 1.99.
  • Pick-up in data for Wednesday: S&P Global US Services/Composite PMIs (47.0, 47.5 respective ests), Durable Goods Orders (1.9% est), Factory Orders (1.2%), ISM Services (53.5 est)
  • Current cross assets: spot Gold reversed direction -9.50 at 1762.67, Crude mild gain: WTI +0.37 at 94.26, stocks marginally lower ESU2 -13.5 at 4107.0
  • Currently, 2-Yr yield is up 11bps at 2.9796%, 5-Yr is up 10.2bps at 2.7365%, 10-Yr is up 7.9bps at 2.6522%, and 30-Yr is up 2.8bps at 2.9421%