Free Trial

Firmer On Weakness In Chinese Tech Stocks & Sharper Than Expect First Republic Deposit Flight

US TSYS

TYM3 re-tested its early Asia-Pac highs on a downtick in Chinese tech stocks, although failed to break that line. The contract is +0-10 into London hours, 0-01 off the peak of its 0-06 Asia-Pac range, on volume of ~68K. Monday’s break and close above 115-00 eases the bearish technical threat, with bulls now targeting the 14 Apr high (115-23).

  • Cash Tsys are 0.5-2.5bp richer, with intermediates leading the bid.
  • Weakness in Chinese tech stocks, centred on continued worry re: potential fresh U.S. steps against the Chinese chip space, along with some questions surrounding the longevity of the Chinese consumption boom, supported Tsys overnight.
  • That came after support from First Republic’s earnings, published after hours on Monday, faded.
  • Warnings from Russia re: the potential for direct conflict with the U.S. also generated some alarm.
  • The most notable rounds of flow came via pockets of TY & FFK3 screen buying during the early rounds of Asia-Pac trade.
  • ECB & BoE speak will come under the microscope during the London morning. Further out, NY hours will see the release of new home sales data, a couple of the major home price metrics, consumer confidence. services activity indicators from the Philly & Dallas Feds and the Richmond Fed m’fing index. We will also get 2-Year Tsy supply.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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.