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FV/TY Steepener Blocked

US TSY FUTURES

Latest block trades lodged at 07:19:12 London/02:19:12 NY:

  • FVU4 8K lots blocked at 110-05.25, looks like a buyer.
  • TYU4 5K lots blocked at 114-28+, looks like a seller.
  • Would point to a steepener.
  • That comes with the 5-/7-Year Tsy spread trading within 0.2bp of this year’s closing high as the market continues to run with the idea of a Fed policy mistake, pricing in a very aggressive cutting cycle post-NFPs.

Fig. 1: U.S. 5-/7-Year Tsy Yield Curve (bp)

Source: MNI - Market News/Bloomberg

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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