Free Trial
US EURODLR OPTIONS

BLOCK, Second Dec Put Condor Adjusts Strikes

US EURODLR OPTIONS

Late Vol Buyer

USDJPY TECHS

Bull Trend Extends

US OUTLOOK/OPINION

Recession Consensus Mounts: Timing/Severity Vary (4/4)

US EURODLR OPTIONS

BLOCK, Dec Put Condor

US TSY FUTURES

BLOCK, More Front End Selling

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

Futures Lower To Start The Week

US TSYS

TYM2 trades on the backfoot as crude oil futures pull lower to start the week, with the latter dynamic likely aided by weekend comments from Yemen's Houthi group, as it noted that it was suspending missile and drone strikes on Saudi Arabia for three days. RTRS have highlighted that the group said the peace initiative “could be a lasting commitment if the Saudi-led coalition fighting in Yemen stopped air strikes and lifted port restrictions.” A reminder that missiles launched by the group successfully struck Saudi oil facilities on Friday of last week.

  • The impulse from lower oil prices is seemingly outweighing other news flow from the weekend, which were headlined by the declaration of a two-stage lockdown in the Chinese city of Shanghai, while the White House had to quickly row back comments from U.S. President Biden which seemingly pointed to a want for regime change in Russia, stressing that was not the end goal of U.S. policy re: the Russia-Ukraine conflict.
  • Thus, the move lower in crude oil prices has taken some of the stagflationary element out of Tsy futures (at the margin), leaving TYM2 -0-01+ at 121-16, as the contract takes a look below Friday’s worst levels.
  • To recap, the recent run of weakness in U.S. Tsys extended ahead of the weekend, with a fresh round of hawkish FOMC views from the sell-side, focus on reports flagging Russia targeting “full control” of a limited area of Ukraine, as opposed to the whole country, and potential convexity-hedging related flows seemingly in the driving seat on Friday. That left Tsys 5-15bp cheaper across the curve come the close, with 5s leading the weakness as the curve bear flattened.
  • There isn’t anything of note in terms of wider risk events on Monday’s Asia-Pac docket. Looking ahead, NY hours will bring advance goods trade data, inventory readings and the latest Dallas Fed m’fing activity print. Meanwhile, 2- & 5-Year Tsy auctions headline on the supply front.
324 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.

TYM2 trades on the backfoot as crude oil futures pull lower to start the week, with the latter dynamic likely aided by weekend comments from Yemen's Houthi group, as it noted that it was suspending missile and drone strikes on Saudi Arabia for three days. RTRS have highlighted that the group said the peace initiative “could be a lasting commitment if the Saudi-led coalition fighting in Yemen stopped air strikes and lifted port restrictions.” A reminder that missiles launched by the group successfully struck Saudi oil facilities on Friday of last week.

  • The impulse from lower oil prices is seemingly outweighing other news flow from the weekend, which were headlined by the declaration of a two-stage lockdown in the Chinese city of Shanghai, while the White House had to quickly row back comments from U.S. President Biden which seemingly pointed to a want for regime change in Russia, stressing that was not the end goal of U.S. policy re: the Russia-Ukraine conflict.
  • Thus, the move lower in crude oil prices has taken some of the stagflationary element out of Tsy futures (at the margin), leaving TYM2 -0-01+ at 121-16, as the contract takes a look below Friday’s worst levels.
  • To recap, the recent run of weakness in U.S. Tsys extended ahead of the weekend, with a fresh round of hawkish FOMC views from the sell-side, focus on reports flagging Russia targeting “full control” of a limited area of Ukraine, as opposed to the whole country, and potential convexity-hedging related flows seemingly in the driving seat on Friday. That left Tsys 5-15bp cheaper across the curve come the close, with 5s leading the weakness as the curve bear flattened.
  • There isn’t anything of note in terms of wider risk events on Monday’s Asia-Pac docket. Looking ahead, NY hours will bring advance goods trade data, inventory readings and the latest Dallas Fed m’fing activity print. Meanwhile, 2- & 5-Year Tsy auctions headline on the supply front.