J.P.Morgan note that Thursday will see “Treasury auction $42bn 7-Year notes, $2bn smaller in size than last month. 7-Year yields are now 15bp below the levels of the April auction and the sector appears somewhat rich after adjusting for the level of rates and the shape of the curve. The WI roll opened at +0.625bp, slightly rich to our fair value estimate, and is now trading at 0bp, roughly in line with the erosion of carry. Despite recent strong end-user demand from the investment management community, valuations in the sector look somewhat rich on the curve and we think tomorrow’s auction should require some concession in order to be digested smoothly.”
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
Sign up now for free access to this content.
Please enter your details below and select your areas of interest.
Why Subscribe to
MNI is the leading providerof 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 credibilityfor 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.
We are facing technical issues, please contact our team.
Your request was sent sucessfully! Our team will contact you soon.