Market Roundup: Short Pause in Risk-Off Action

As was the case early Monday -- FI Markets well bid, but off late overnight highs, yield curves continue to bull steepening: 5s30s +7.42 at 51.59 (from 35.23 low last week). 30YY currently 2.1534% -0.0077 vs. 2.0681% overnight low. Russia invasion of Ukraine main driver for risk-off support in rates.

• Some unwinds over last hour noted. Better buying across the curve in early London trade Trading desks reported central bank buying 2s, fast$, real$ and bank portfolio buying 5s-10s earlier. Prop and fast$ acct selling ahead the NY open, deal-tied selling in 5s-10s. Heavy buying Eurodollar Whites-Reds (EDH2-EDZ3) as mkt pricing pace of rate hikes cools.
  • Equities weaker ahead the cash open, off lows: SPX eminis -11.5 points (-0.26%) at 4355.25
  • US$ gaining: DXY +.353 to 97.06
  • Gold had topped 1925.00 overnight now trading +$9.52 (0.5%) at $1918.13
  • WTI crude well bid near late overnight highs as well: $5.09 (5.32%) at $100.75
• Tsy Technicals: Jun 10Y extends the recovery that started Feb 10 off 125.14+. Price has cleared both the 20- and 50-day EMAs and the break of the latter EMA strengthens the current bullish theme.
• • Resistance at 128-17, Jan 24 high has been tested. A clear break would signal scope for a climb towards the 129-00 handle next.
  • On the downside, the 20-day EMA is seen as an initial firm support. It intersects at 126-24.