MNI: Fed: Policy Well Positioned To Respond To Risks

CANADA JUNE JOBS -1.4K VS FORECAST +20K, PRIOR +26.7K

MNI China Daily Summary: Friday, July 5

MNI BRIEF: PBOC Plans To Borrow Hundred Bln Yuan CGB - Press

MNI: PBOC Net Drains CNY48 Bln Via OMO Fri; Rates Unchanged

MNI: PBOC Sets Yuan Parity Lower At 7.1289 Fri; -0.35% Y/Y

EZ/UK Bond Supply Calendar: EU/UK Syndications Due Next Week

CANADA JUN IVEY PURCHASING MANAGERS INDEX 62.5 SA

MNI: BLS: NET PAYROLLS REVISIONS FOR MAY, APRIL -111K

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

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

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

Goldman: Mixed Signals Ahead Of Jobs Report

US TSYS
HomepageBond Market NewsBulletMarketsFixed Income Bullets

Goldman Sachs note that “price action was mixed last week amid modestly softer activity data, some further weakness in auctions and modest relief on the inflation news.”

  • “Ahead of the payrolls report we expect yields to remain within a fairly narrow range.”
  • “With inflation gradually easing, the bar for Fed hikes remains high which should curb any right tails on the rates distribution, while the lack of more significant inflation progress alongside still-solid growth limits the extent of any rally – although we continue to think any signs of growth or labour market weakness presents asymmetric risks for yields to move lower – we continue to like long 5y vs 2y and 10y.”
  • “This macro set up should favour rates volatility suppression, although given implied vol already at cyclical lows the case for vol shorts has diminished somewhat, particularly ahead of key macro events including payrolls and the June FOMC meeting, in addition to election-related uncertainty.”
156 words

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.

Goldman Sachs note that “price action was mixed last week amid modestly softer activity data, some further weakness in auctions and modest relief on the inflation news.”

  • “Ahead of the payrolls report we expect yields to remain within a fairly narrow range.”
  • “With inflation gradually easing, the bar for Fed hikes remains high which should curb any right tails on the rates distribution, while the lack of more significant inflation progress alongside still-solid growth limits the extent of any rally – although we continue to think any signs of growth or labour market weakness presents asymmetric risks for yields to move lower – we continue to like long 5y vs 2y and 10y.”
  • “This macro set up should favour rates volatility suppression, although given implied vol already at cyclical lows the case for vol shorts has diminished somewhat, particularly ahead of key macro events including payrolls and the June FOMC meeting, in addition to election-related uncertainty.”