MNI BRIEF: US Treasuries Seen Increasingly Risky-JH Paper

MNI: FED’S POWELL: TIME HAS COME FOR POLICY TO ADJUST

MNI China Daily Summary: Friday, Aug 23

MNI: PBOC Net Injects CNY241.5 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Higher At 7.1358 Fri; +2.17% Y/Y

CHINA PBOC CONDUCTS CNY379.3 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: US JUL NEW HOME SALES +10.6% TO 0.739M SAAR

EZ/UK Bond Supply Calendar: EFSF RfP Sent, EU-Bonds Due Monday

MNI: CANADIAN JUN RETAIL SALES -0.3%; SALES EX-AUTOS/PARTS +0.3%

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Post-LIBOR Settle Update, Option Tone

US EURODLR FUTURES

Lead quarterly EDH2 dips but still off overnight low after latest 3M LIBOR climbs to highest level since Aug 2020: +0.00943 to 0.26714% (+0.01642 total last wk).

  • Balance of Whites through Greens (EDH2-EDZ4) trading weaker as mkt continues to price in tighter forward policy expectations from the Fed: four .25bp quarterly hikes starting this March, another two-three in 2023.
  • Uncertainty increases in late 2024 as EDZ4 (98.005) trades inverted vs. most of the Blue pack (EDH5-EDZ5).
  • Last week saw some downside rate-hike long put position unwinds as underlying futures rebounded, but longer-term policy lift-off theme likely to prevail, expect put skew to remain largely bid over corresponding OTM calls.
  • On the flip-side, exogenous geopolitical risk tied to Russia/Ukraine tension likely to spur better call buying, underlying support if diplomacy fails and Ukraine invasion comes to fruition.

BulletMarketsFixed Income BulletsHomepage
BulletMarketsFixed Income BulletsHomepage

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.