© 1982-2022 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial
JGB TECHS

(U2) Solid Bounce Into the Close

USDCAD TECHS

Bullish Price Structure

AUDUSD TECHS

Clears Key Support

EURJPY TECHS

Retracement Mode

COMMODITIES

Oil Supply Constraints Trump Lower Demand

USDJPY TECHS

Pullback Considered Corrective

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
Trending Top 5
Topics

J.P.Morgan: 30-Year Supply Likely Requirs Above Avg. End User Demand

US TSYS
BulletMarketsFixed IncomeBond Market News

J.P.Morgan note that Thursday will see Treasury auction “$22bn 30-Year bonds, $1bn smaller than the last new-issue auction in February. 30-Year yields have risen 34bp since the April auction and are sitting at their highest levels since the fall of 2018. Moreover, as we have highlighted recently, long-term yields appear too high after controlling for their fundamental drivers and the long end is too steep after adjusting for the market’s medium-term Fed expectations. All else equal, this should be supportive for tomorrow’s auction. However, as we have stressed recently, liquidity remains depressed and risk appetite remains light amid high volatility. Thus, we think it will require above-average end-user demand to underwrite this supply smoothly.”

114 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.

J.P.Morgan note that Thursday will see Treasury auction “$22bn 30-Year bonds, $1bn smaller than the last new-issue auction in February. 30-Year yields have risen 34bp since the April auction and are sitting at their highest levels since the fall of 2018. Moreover, as we have highlighted recently, long-term yields appear too high after controlling for their fundamental drivers and the long end is too steep after adjusting for the market’s medium-term Fed expectations. All else equal, this should be supportive for tomorrow’s auction. However, as we have stressed recently, liquidity remains depressed and risk appetite remains light amid high volatility. Thus, we think it will require above-average end-user demand to underwrite this supply smoothly.”