CANADA JULY CPI +2.5% YOY, SLOWEST SINCE MARCH 2021

MNI China Daily Summary: Tuesday, Aug 20

China Repo Rates Rise On Tuesday

MNI: PBOC Net Drains CNY236.6 Bln via OMO Tuesday

MNI: PBOC Sets Yuan Parity Lower At 7.1325 Tues; +2.12% Y/Y

MNI: US REDBOOK: AUG STORE SALES +4.8% V YR AGO MO

MNI: US AUG PHILADELPHIA FED NONMFG INDEX -25.1

MNI: CANADA JUL CPI INFLATION +0.4% M/M, +2.5% YY

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

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

Market Roundup: Reversal Tuesday, 10YY Sub-3% Again

US TSYS
Rates trading stronger, near recent highs on strong volumes (TYU2>800k). Yield curves bull flattening with bonds leading -- unwinding much of Mon's weakness Current 30YY 3.1211% after nearly tapping Mon's 3.2044% high overnight; 10YY back below 3.0% at 2.9644% vs. 3.0621% overnight high.
  • No specific driver for the reversal, trading desks say, though there are "big short positions per JPM survey .. while we usually rally through supply," on added, citing Tsy coupon auctions that start w/ $44B 3Y notes today.
  • "Today is a buy everything day," another quipped as stocks bounce (ESM2 +12.5 at 4133.0; Gold +10.30 at 1851.73; WTI crude +1.25 at 119.75.
  • Technicals for TYU2 at 118-14.5 (+17): still below the 50-day EMA - at 120-04+ today. The EMA represents a key resistance and a clear break would allow for a stronger recovery towards 122-00. The recent move away from the average however, suggests the corrective cycle since May 9 is over. An extension lower would open key support and a bear trigger at 116-21, May 9 low.
  • No react to limited data: US APR TRADE GAP -$87.1B VS MAR -$107.7B. Unlikely to see react to Consumer credit ($35B est) at 1500ET.
  • No react to Tsy Sec Yellen testimony to Committee on Finance, U.S. Senate, nothing really new as the former Fed chair touches upon supply constraints, chip shortages underpinning inflation.
  • That said -- starting to see pick-up in stories suggesting global inflation may be topping out, Bbg citing semiconductor prices, spot rate for shipping containers and fertilizer prices plateauing.
BulletMarketsFixed Income BulletsHomepage
BulletMarketsFixed Income BulletsHomepage

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.