Free Trial

Modest Sell-Off, Fed To Commence QT

US TSYS
  • Cash Tsys have dipped lower through European hours at the front-end, aided by a small uptick in the final Eurozone manufacturing PMIs, after keeping to a narrow range overnight ahead of the Fed commencing QT today.
  • It leaves yields slightly up on the day, biased somewhat towards the belly and less so front-end but is does little to change yesterday’s bear steepening of the curve, with 2s10s at 29bps.
  • 2YY +1.4bps at 2.571%, 5YY +1.7bps at 2.834%, 10YY +0.9bps at 2.853% and 30YY +0.9bps at 3.054%.
  • TYU2 sits 4 ticks lower at 119-10+ with modestly above average volumes. It’s off a session low of 119-03+ as it fleetingly began to test initial support at 119-03 (May 23 low), clearance of which could open a key short-term support at 118-01+ (May 18 low).
  • See the Fed Funds STIR bullet for data and Fedspeak detail, along with the Beige Book at 1400ET.
  • No bill or bond issuance.

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.