Free Trial

No Hawks To Temper Tsy Rally, 30YY Sub-1.92%


Overnight support for US rates carried through Thursday's session, 30Y Bonds lead the charge all day, finishing just off highs, yield curves flatter. Intermediates lagged slightly, 10Y futures tested first resistance of 133-26.5 several times before settling back around -25 to -25.5.

  • Support for Tsys picked up early in the second half (30YY slips to 1.9160% low) as Chicago Fed Pres Evans headlines make the rounds:
  • "The upside potential for inflation isn't quite as strong and sustainable as I would like," adding "SLIGHTLY MORE PERSISTENT INFLATION WOULDN'T BE BAD" while "I don't think you can get 2.5% to 3% year after year on the basis of these relative price increases".
  • Tsy Sec Yellen also spoke on NPR later in day but didn't saying anything new, or particularly market moving: expecting inflation to fade over the mid-term.
  • Fed Chair Powell's semiannual mon-pol report to the Senate failed to illicit much of a market reaction either.
  • Bonds maintain strong bid after flurry of data, weekly claims little higher than exp at 360k vs. 350k est while continuing claims inch lower again: -126k to 3.241M vs. 3.3M est.
  • The 2-Yr yield is up 0bps at 0.2231%, 5-Yr is down 2.1bps at 0.7736%, 10-Yr is down 4.9bps at 1.2972%, and 30-Yr is down 5.1bps at 1.9199%.

To read the full story



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.