MNI ASIA OPEN: Biden Fed Appts Next Wk, Raskin Eyed

EXECUTIVE SUMMARY

White House Nearing Fed Appointment Announcements

• BIDEN EYES RASKIN AS BANK'S VICE CHAIRWOMAN OF SUPERVISION: DJ
• BIDEN ALSO CONSIDERS COOK, JEFFERSON FOR OTHER FED POSTS: DJ

US

FED: Markets have been waiting for this since Powell's re-nomination on November 22, the White House looking to announce their new appointments to the Federal Reserve next week (no set time). DJ headlines:

• BIDEN EYES RASKIN AS BANK'S VICE CHAIRWOMAN OF SUPERVISION: DJ
• BIDEN ALSO CONSIDERS COOK, JEFFERSON FOR OTHER FED POSTS: DJ

US TSYS: New Highs For Stocks Yet Again

• 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%.

OVERNIGHT DATA

• U.S. OCT. FHFA HOME PRICE INDEX RISES 1.1% M/M vs. 0.9% Est; +17.4% YoY
• U.S. OCT. S&P CORELOGIC CS 20-CITY INDEX RISES 18.4% Y/Y

• US REDBOOK: DEC STORE SALES +17.3% V YR AGO MO
• US REDBOOK: STORE SALES +21.4% WK ENDED DEC 25 V YR AGO WK
• US REDBOOK: WILL RESUME MONTH-TO-MONTH DATA COMPARISON IN FEB 2022

MARKETS SNAPSHOT

• 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
• US 10-Yr yield is up 0.3 bps at 1.479%
• US Jun 10Y are up 2/32 at 130-14
• EURUSD down 0.0024 (-0.21%) at 1.1307
• USDJPY down 0.05 (-0.04%) at 114.76
• WTI Crude Oil (front-month) up $0.35 (0.46%) at $76.00
• Gold is down $5.48 (-0.3%) at $1809.79

• 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

US TSY FUTURES CLOSE

• 3M10Y -0.244, 141.481 (L: 137.236 / H: 141.996)
• 2Y10Y -4.197, 72.875 (L: 71.069 / H: 77.792)
• 2Y30Y -2.854, 115.051 (L: 110.894 / H: 118.387)
• 5Y30Y +2.119, 65.677 (L: 61.232 / H: 66.645)
• Current futures levels:
• Mar 2Y up 0.375/32 at 109-1.5 (L: 109-01 / H: 109-02.25)
• Mar 5Y up 1.75/32 at 120-30.25 (L: 120-28 / H: 120-31.75)
• Jun 10Y up 2/32 at 130-14 (L: 130-12.5 / H: 130-19.5)
• Jun 30Y down 2/32 at 162-24 (L: 162-19 / H: 163-05)

US EURODOLLAR FUTURES CLOSE

• Mar 22 steady at 99.625
• Jun 22 steady at 99.380
• Sep 22 +0.005 at 99.175
• Dec 22 +0.005 at 98.940
• Red Pack (Mar 23-Dec 23) +0.010 to +0.025
• Green Pack (Mar 24-Dec 24) +0.015 to +0.020
• Blue Pack (Mar 25-Dec 25) +0.010 to +0.015
• Gold Pack (Mar 26-Dec 26) +0.005 to +0.010

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 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.

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)