MNI BRIEF: ECB Cut On Disinflationary Process Trust-Centeno

CANADA MAY JOBS +26.7K VS FORECAST +20K, PRIOR +90.4K

MNI China Daily Summary: Friday, June 7

MNI BRIEF: Mexico Inflation 4.69% In May, Below Consensus

MNI BRIEF: China May Forex Reserves Rise On Weakened Dollar

MNI BRIEF: China Service Trade Grows Rapidly, Deficit Expands

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

Weak Household Survey Continues To Tell Much More Pessimistic Story

EZ/UK Bond Supply Calendar: BoE APF Mon; EU, UK Synd W/C 10-Jun

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Focus Back on FOMC, Steady Rate Expected

US TSYS
Monday's risk-off/safe-haven bid for rates as global equities sold off sharply eased Tuesday as contagion angst tied to potential default risk of China's Evergrande cooled. Tsys traded weaker but off lows by the close, equities mildly higher (ESZ1 +14.0 at 4362.0). Focus turned back to Wed's FOMC annc -- for the most part.
  • There was a brief risk-off react to latest Evergrande headlines in early trade
  • that were not unexpected: Tsys blipped higher briefly after latest Evergrande headline stirred default angst after China's second largest real-estate developer missed payments to two banks. China, however, said this may be the case Monday while it appeared to be a knee-jerk react recently as Tsy futures pared losses but reversed move just as quickly.
  • As to the FOMC, steady rate and policy announcement widely expected, most sell-side analysts anticipating a taper annc at the November FOMC meeting.
  • Aside from two-way positioning, trade included option-tied hedging ahead Fri's Oct Tsy option expiry and vs. decent pick-up in corporate issuance: $12.5B.
  • Tsys steady/mixed after $24B 20Y Bond auction re-open (912810TA6) stops through: drawing a high yield of 1.795% (1.850% last month) vs. 1.800% WI. Bid-to-cover 2.36 vs. 2.44 in August.
  • After the bell the 2-Yr yield is down 0.4bps at 0.2118%, 5-Yr is up 0.5bps at 0.8292%, 10-Yr is up 1.4bps at 1.3243%, and 30-Yr is up 1.2bps at 1.8591%.
BulletMarketsFixed Income BulletsHomepage
BulletMarketsFixed Income BulletsHomepage

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.