Free Trial
US TSYS

Late SOFR/Eurodollar/Treasury Option Roundup

EURJPY TECHS

Holding On To Its Recent Gains

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: New All-Time Inverted Lows for 2s10s

US TSYS

Focus on bull curve flattening as 2s10s falls to new all-time inverted low of -65.289 as short end under pressure after stronger Retail Sales (+1.3% vs. 1.0% est, ex-auto +1.3% vs. 0.5% est) tempered yr-end "step-down" pricing: Fed funds implied hike for Dec'22 back to 49.8bp, Feb'23 cumulative 85.3bp vs. 84.5bp, to 4.707%, terminal 4.92% in Jun'23 (5.08% pre-CPI).

  • Bonds strong - holding near session highs (30YY currently 3.8882%) heading into the US Tsy $15B 20Y Bond auction (WI 4.090%). No obvious headline driver for bounce, some trading desks simply state need to add duration, add flatteners.
  • Solid October retail sales report, with stronger revisions to prior, and a robust +0.7% M/M control group number (which is what feeds into the GDP calculations).The 1.3% overall gains included positive M/M readings in most categories.
  • As usual, the impact of inflation will be a point of contention for October's retail sales beat - real retail sales is close to flat Y/Y (vs the 8.3% Y/Y gain in nominal).
163 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.

Focus on bull curve flattening as 2s10s falls to new all-time inverted low of -65.289 as short end under pressure after stronger Retail Sales (+1.3% vs. 1.0% est, ex-auto +1.3% vs. 0.5% est) tempered yr-end "step-down" pricing: Fed funds implied hike for Dec'22 back to 49.8bp, Feb'23 cumulative 85.3bp vs. 84.5bp, to 4.707%, terminal 4.92% in Jun'23 (5.08% pre-CPI).

  • Bonds strong - holding near session highs (30YY currently 3.8882%) heading into the US Tsy $15B 20Y Bond auction (WI 4.090%). No obvious headline driver for bounce, some trading desks simply state need to add duration, add flatteners.
  • Solid October retail sales report, with stronger revisions to prior, and a robust +0.7% M/M control group number (which is what feeds into the GDP calculations).The 1.3% overall gains included positive M/M readings in most categories.
  • As usual, the impact of inflation will be a point of contention for October's retail sales beat - real retail sales is close to flat Y/Y (vs the 8.3% Y/Y gain in nominal).