MNI: PBOC Net Drains CNY98 Bln Via OMO Thurs; Rates Unchanged

MNI: PBOC Sets Yuan Parity Lower At 7.1305 Thurs; -0.79% Y/Y

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS THURS

CHINA SETS YUAN CENTRAL PARITY AT 7.1305 THURS VS 7.1312

MNI NBP WATCH: Rates Held As 2024 Outlook Remains Hawkish

MNI BRIEF: ADP's Richardson Sees Pockets of Weakness in US Job Market

Australia May Exports +2.8%; Imports +3.9%

MNI:AUSTRALIA MAY TRADE BALANCE A$+5773

US Treasury Auction Calendar

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

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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

Markets Roundup: Off Lows, 2s10s Curve Turns Steeper

US TSYS
  • Treasury futures are drifting off recent session lows following the first block buy of the day: +5,000 FVU3 107-06.25, buy through 107-06 post-time offer at 1324:02ET, 107-07.25 last (--18.25). As was the case in EGBs, session moves were largely flow driven, not headline related on the day.
  • Futures opened and continued to extend lows after weekly claims came out lower than expected at 228k vs. 240k est., Philly Fed -13.5 vs. -10 est. Sporadic knee-jerk selling saw front month 10Y futures initially mark 112-09.5 low (-22.5) before bouncing to 112-14 amid moderate two-way trade.
  • Trading desks reported heavy round of selling in 10s into midday: over 15,000 TYU3 extended session low to 112-00 (-1-00). Unexpected consequence, 2s10s curve bounced off the session inverted low of -105.083 (compares to appr 40-year lows tapped in early March and July of -110.89) to -98.818, up +3.169 on the day.
  • Despite the late drift off lows, rate hike projections gain slightly: July running at 96% w/ implied rate of +24bp to 5.318%. September cumulative of +28.2bp at 5.360%, November cumulative of 34.2bp at 5.42%, and December cumulative of 28.8bp at 5.366%. Fed terminal holding at 5.42% in Nov'23.
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.