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BONDS

Bailey's comments lead FI lower

DUTCH T-BILL AUCTION RESULTS

3.5/5.5-month DTCs

GERMAN T-BILL AUCTION RESULTS

5/11-month bubills

US TSYS SUMMARY

Generally a risk-on trade Thursday, rates/equities weaker/stronger but off lower/higher bounds by the bell. In other words, markets fairly subdued in the session after the FOMC left rates and bond buying steady (if I had a dollar for every time I heard "no time to taper" I could go to the movies).

  • Speaking of the movies, in another hopeful sign the pandemic is loosening it's grip: Lowe's to Hire 50,000 Staff, Sets Hiring Event for May 4, Bbg. Elsewhere, France hopes to reopen in phases starting May 3, Germany looking to ease restrictions for the vaccinated, while NY Mayor De Blasio marked July 1 on calendar for NY reopening (NY schools at 100% in the fall).
  • Rates hit session lows around 1000ET, S&P eminis made new all-time highs (4210.0). From that point through the Tsy close, Tsys weaker but at top end of session range, markets scaled back respective moves, eminis just over 4200.0.
  • Despite decent overall volumes (TYM1 >1.4M) desks did not report much conviction in the second half reversal, some repositioning, month-end flow, muted deal-tied hedging. Note, next Tsy quarterly refunding annc next week Wed at 0830ET -- expected to remain on par w/prior quarter likely due to uncertainty over large-scale infrastructure spending and whether the debt ceiling will be reinstated July 31.
  • The 2-Yr yield is unchanged at 0.1641%, 5-Yr is up 1.4bps at 0.8652%, 10-Yr is up 2.9bps at 1.6379%, and 30-Yr is up 1.9bps at 2.3082%.
MNI Chicago Bureau | +1 312-431-0089 | bill.sokolis@marketnews.com
MNI Chicago Bureau | +1 312-431-0089 | bill.sokolis@marketnews.com