September 29, 2022 16:16 GMT
Tsys weaker into midday, but well off late overnight lows to top of the range as London goes home for the evening.
- Little reaction to Fed speakers on the day, Bullard: "This is probably a good time to get inflation under control while the labor market is doing so well." Weekly claims lower than exp (193k vs. 215k; continuing claims 1.347M vs. 1.385M est), GDP slightly higher at 9.0% vs. 8.9% est.
- Stocks weaker/off lows as well, SPX eminis -68.0 at 3664.0, Gold firmer +4.23 at 1644.15, Crude holding onto yesterday's gains w/ WTI +0.5 at 82.65, US$ index -.281 at 112.323 (while GBP taps 1.110 high)
- On the open, FI mkts had scaled back decent portion of Wed's BOE buy program-tied rally w/ PM Liz Truss continued defense of the mini-budget on BBC radio, strong regional German CPI overnight adding to moves. Second round of BoE Gilt purchases underutilized: GBP1.415bln of long-dated gilts. Rejects GBP442.8mln offers. Take-up higher than Wed - but still relatively low, GB2.5B of 10B thus far.
- Still working out the kinks, PM Truss on regional BBC TV: BEST TO START TODAY ON GOVERNMENT'S FISCAL PLANS as WE"RE IN A VERY SERIOUS SITUATION.
- Technical view for TYZ2 at 111-30 (-29.5): Tsys remain vulnerable despite Wed’s climb. The latest extension of the downtrend together with this week’s move lower, has reinforced current conditions. A bearish price sequence of lower lows and lower highs and bearish moving average studies clearly highlight the market's bearish sentiment. The focus is on 109-26+ a lower moving average band value. Initial resistance is last Friday’s high of 112-30+.