Free Trial

Off Late Morning Lows, Curves Steeper

US TSYS
  • Treasuries look to finish weaker after a firmer start Monday, rather subdued trade in the aftermath of President Biden's Sunday annc he would drop out of the 2024 presidential race.
  • Treasury futures held a narrow range for much of the first half, gapped lower heading into the London close. Sell-stops were triggered, adding to the speed of the move as Sep'24 10Y futures breached initial technical support at 110-21.5 (20-day EMA) to 110-18.5 low. Focus turned next support at 110-08 (50-day EMA values).
  • No obvious headline driver or block for the move, some desks cited incoming Treasury coupon supply (2s, 5s, 7s and 2Y FRN) or possibly some hedging of election risk that had not been addressed as soon as markets opened late Sunday.
  • Another driver for the unexplained sell-off could be the ongoing theme were Tsys sell-off going into the London close and gradually reverse in the second half.
  • Focus turns to Tuesday's Regional Fed and Existing Home Sales data, Tsy $70B 42D CMB Bill and $69B 2Y Note auctions.

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.