Free Trial
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.
US TSYS: New Highs For Stocks Yet Again
Tsys mixed after the bell, carry-over support for bonds from Mon evaporated since midmorning. Delayed selling after weak 5Y auction. Yield curves recovered from early flattening, 5s30s +2.37 to 65.79; very limited volumes (TYH2 >425k by the bell) should improve when London returns from holiday Wed.- Equities climb to new all-time highs, ESH2 4798.0; Gold reversed early gains, -5.65 to 1806.48 late; West Texas crude +0.47 at 76.04.
- No react to FHFA Home price index 1.1% M/M vs. 0.9% Est; +17.4% YoY.; US REDBOOK: Store sales +21.4% wk ended Dec 25; +17.3% vs. year ago lvl.
- QE: NY Fed buy-operations pause for holidays, resume January 3.
- Tsy futures held near middle of session range after paring gains ahead the auction. Delayed react after $57B 5Y note auction (91282CDQ1) tailed: 1.263% high yield vs. 1.257% WI; 2.41x bid-to-cover vs. last month's 2.34x. Indirect take-up: new year high of 65.66% vs. 56.88% last month. On tap Wed: $56B 7Y note sale (91282CDP3)
- Headline watching: White House Nearing Fed Appointment Annc next week
- The 2-Yr yield is up 4.9bps at 0.748%, 5-Yr is down 0.3bps at 1.2434%, 10-Yr is up 0.3bps at 1.479%, and 30-Yr is up 1.6bps at 1.8997%.
SHORT TERM RATES
US DOLLAR LIBOR: No new settlement with London closed for Christmas holiday through December 28. Settlements as of Friday, December 24:
- O/N -0.00538 at 0.06975% (-0.00450 total last wk)
- 1 Month -0.00063 to 0.10125% (-0.00125 total last wk)
- 3 Month -0.00187 to 0.21788% (+0.00525 total last wk) ** Record Low 0.11413% on 9/12/21
- 6 Month +0.00687 to 0.34325% (+0.03050 total last wk)
- 1 Year +0.00600 to 0.56713% (+0.03750 total last wk)
- Daily Effective Fed Funds Rate: 0.08% volume: $75B
- Daily Overnight Bank Funding Rate: 0.07% volume: $257B
- Secured Overnight Financing Rate (SOFR): 0.04%, $888B
- Broad General Collateral Rate (BGCR): 0.05%, $328B
- Tri-Party General Collateral Rate (TGCR): 0.05%, $316B
- (rate, volume levels reflect prior session)
- NY Fed buy-operations pause for holidays, resume Jan 3:
- Mon 01/03 1010-1030ET: Tsy 2.25Y-4.5Y, appr $6.325B vs. $7.375B prior
- Tue 01/04 1100-1120ET: TIPS 1Y-7.5Y, appr $1.525B
- Wed 01/05 1010-1030ET: Tsy 7Y-10Y, appr $2.425B vs. $2.825B prior
- Wed 01/05 1100-1120ET: Tsy 22.5Y-30Y, appr $1.825B
- Thu 01/06 1100-1120ET: TIPS 7.5Y-30Y, appr $0.925B
- Fri 01/07 1010-1030ET: Tsy 0Y-2.25Y, appr $9.325B
FED Reverse Repo Operation
NY Federal Reserve/MNI
NY Fed reverse repo usage bounces to $1,637.064B from 78 counterparties vs. $1,580.347B Monday. Record high of $1,758.041B posted Monday, December 20.
EURODOLLAR/TREASURY OPTIONS SUMMARY
Eurodollar Options:- 8,200 Jun 100.00 calls, 0.5
- +3,000 Red Dec'23 97.00/98.00 put spds, 19.25
- +4,000 short Mar 99.12/99.25 call spds, 2.0
- -4,000 Green Jun 98.00/98.62 call over risk reversals, 1 vs. 98.345/0.06%
- +5,000 short Jan 98.75 puts, 7.5 vs. 98.77/0.46%
- +5,000 short Jun 99.25/99.37 call spds, 1.5 vs. 98.58/0.05%
- -5,000 Sep 99.00/99.12/99.37 put flys, 8.5
- +5,000 Jun 99.00/99.25 2x1 put spds 1.75
- -25,000 Green Mar 98.00 puts, 5.0 vs. 98.35/0.19% adds to Block
- Block, -11,750 Green Mar 98.00 puts, 5.0 vs. 98.35/0.19%
- Block, -26,000 Jun 99.50/99.62 put spds, 8.5
- -4,500 TYH 128.5/132.5 strangles, 33-34
- -2,215 TYG 130.5 straddles, 115
- +1,750 USG 165.5 calls, 17
- 5,000 FVG 120/120.5 put spds, 8 adds to overnight Block at 9
- 1,000 TYG 129.5/130 3x2 put spds
- Block, +5,000 FVG 120/120.5 put spds, 9, another 1k on screen
EQUITIES
Key late session market levels:
- DJIA up 130.6 points (0.36%) at 36468.19
- S&P E-Mini Future down 2.5 points (-0.05%) at 4787.75
- Nasdaq down 75.9 points (-0.5%) at 15836.91
- EuroStoxx 50 up 23.95 points (0.56%) at 4308.07
- German DAX up 128.45 points (0.81%) at 15953.67
- French CAC 40 up 40.72 points (0.57%) at 7175.43
COMMODITIES
Key late session market levels:
- WTI Crude Oil (front-month) up $0.35 (0.46%) at $76.00
- Gold is down $5.48 (-0.3%) at $1809.79
OUTLOOK: Adv Goods Trade, Wholesale/Retail Inv's, Pending Home Sales, 7Y Sale
- US Data/Speaker Calendar (prior, estimate)
- Dec-29 0830 Advance Goods Trade Balance (-$82.9B, -$88.3B)
- Dec-29 0830 Wholesale Inventories MoM (2.3%, 1.5%)
- Dec-29 0830 Retail Inventories MoM (0.1%, 0.5%)
- Dec-29 1000 Pending Home Sales MoM (7.5%, 0.7%)
- Dec-29 1130 US Tsy $40B 119D bill CMB auction (912796U72)
- Dec-29 1130 US Tsy $24B 2Y FRN note auction re-open (91282CDE8)
- Dec-29 1300 US Tsy $56B 7Y Note auction (91282CDP3)
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok