Free Trial

Post-Data Sale, Buy Rumor, Sell Fact

US TSY FLOWS
Rates sell off after weaker than estimated Retail Sales (-1.1% vs. -0.3% est) has a lot of desks scrambling to come up with viable reasons for the move. Buy the rumor/sell the fact?
  • Though retail sales prior month revised slightly higher (1.6% from 1.3%), unlikely driver given the broad miss on current read.
  • Some desks posit market had anticipated an even greater miss due to effect of Delta-variant.
  • Two-way swap tied flow amid better paying as spds forge directionally wider with Tsy yields. That said, corporate issuance has been lagging this week compared to last week's $40B in first three days. Some pre-auction short setting reported ahead Wed's $27B 20Y bond auction.

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.