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(H2) Remains Below Recent Highs


(H2) Continues to Fade

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Rate selling leg of Mon's risk-off.....>

US TSY FLOWS: Rate selling leg of Mon's risk-off tone evaporates late (block buy
in WNZ adding impetus to rebound), volumes accelerated late w/TYZ just over 1M.
Meanwhile, equities hold near highs (ESZ9 +16.0), gold sharply lower but off
lows (-23.5). Yld curves mostly steeper w/exception on 3M10Y flattening.
- Not much flow to report in late trade, long end has drifted back to mildly
higher, many sidelined ahead Wed's ADP (+140k est), Fri's NFP (+148k)
- Early risk-on, proved ephemeral, could be related to stories saying US TSY has
no current plans to block China listings on US exchanges. Risk-off never far
away as mkts wary of headline risks related to impeachment inquiry, Brexit,
global trade, et al. Swap spds hold wider by the bell, limited action after
first half moves. Short end holds mildly positive territory after dis-inverting
first time since beginning of the month. Modest swap-tied volume on the session
includes better rate paying in 5s and 7s. Limited deal-tied flow, appears specs
positioning for further widening.
- The 2-Yr yield is down 1bps at 1.6217%, 5-Yr is down 1.6bps at 1.5457%, 10-Yr
is down 1bps at 1.6697%, and 30-Yr is down 1bps at 2.1182%.
MNI Chicago Bureau | +1 312-431-0089 |
MNI Chicago Bureau | +1 312-431-0089 |
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