Free Trial
USDCAD TECHS

Impulsive Rally Extends

US TSYS

Late Eurodollar/SOFR/Treasury Option Roundup

EURJPY TECHS

Price Is Below The 50-Day EMA

US

Late Corporate Credit Update

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

Market Roundup: Hawkish Forward Guidance Cools on PMI Services Miss

US TSYS
Tsys holding near midmorning highs at the moment, extending the overnight rally after weak US services sector PMI data followed contractionary reading in France and Germany overnight.
  • Early bid: Tsys surged after France and Germany mfg PMIs both missed expectations overnight, contractionary sub-50 reads at 49.6 and 49.2 respectively (UK mfg PMI bucked trend, coming out at 52.2 vs. 52.0 est).
  • Volumes spiked as Tsy futures furthered the rally (30YY 2.9477% low) after preliminary July reading of the SP Global mfg PMI of 52.3 vs. 52.0 exp (52.7 in June), service sector miss at 47.0 vs. 52.7 est (steady to June read).
  • Heavy first half volume w/ TYU2>1.2M, yield curves bull steepening off inverted lows: 2s10s +3.077 -18.372, 5s30s +6.124 at 11.753 as the forward rate hike expectations in latter half of the year cooled on the data. A 75bps hike is still expected next week while a 50bps move at the Sep policy meeting looks more likely.
  • Fed terminal rate now seen at 3.33%, from what had been seen at 3.69% after last week's US CPI beat.
  • Cross assets: Spot gold extends early gains +12.92 at 1731.73, crude makes modest gains: WTI +0.51 at 96.86.
193 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.
Tsys holding near midmorning highs at the moment, extending the overnight rally after weak US services sector PMI data followed contractionary reading in France and Germany overnight.
  • Early bid: Tsys surged after France and Germany mfg PMIs both missed expectations overnight, contractionary sub-50 reads at 49.6 and 49.2 respectively (UK mfg PMI bucked trend, coming out at 52.2 vs. 52.0 est).
  • Volumes spiked as Tsy futures furthered the rally (30YY 2.9477% low) after preliminary July reading of the SP Global mfg PMI of 52.3 vs. 52.0 exp (52.7 in June), service sector miss at 47.0 vs. 52.7 est (steady to June read).
  • Heavy first half volume w/ TYU2>1.2M, yield curves bull steepening off inverted lows: 2s10s +3.077 -18.372, 5s30s +6.124 at 11.753 as the forward rate hike expectations in latter half of the year cooled on the data. A 75bps hike is still expected next week while a 50bps move at the Sep policy meeting looks more likely.
  • Fed terminal rate now seen at 3.33%, from what had been seen at 3.69% after last week's US CPI beat.
  • Cross assets: Spot gold extends early gains +12.92 at 1731.73, crude makes modest gains: WTI +0.51 at 96.86.