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Free AccessRisk-Off Momentum Ahead Fri's Aug NFP
Tsys well bid by the NY close -- heading into Fri's Aug NFP (+1.350M est) with strong risk-off tone as equity indexes tumbled, (emini -145.0 (-4.05%) at 3563.0; NDX -666.7 (-5.5%) at 12056.44; DJIA -950.68 (-3.27%) at 29100.5).
- Choppy session all around: Tsys dipped after weekly claims, pre-/post-data flow includes real$ selling 10s and 30s, sporadic buying in 30s from leveraged$. Fast$ buying short end, swap-tied selling 5s.
- Tsys surged after midmorning buy 5k TYZ Block, while broadly weaker equities helped risk-off tone accelerate ahead midday as sources reported large sell program helped trigger sharp sell-off in NASDAQ, near 1,900 (largest sale program since mid-June). Sources noted ongoing real$ buying in long end joined by bank portfolios.
- Tsy pared gains (equities remained weaker) as Tsys drew some selling immediately after Fed buy op in 7s-20s.
- The 2-Yr yield is down 0.8bps at 0.125%, 5-Yr is down 1.3bps at 0.239%, 10-Yr is down 2.4bps at 0.6234%, and 30-Yr is down 3.8bps at 1.3407%.
To read the full story
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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.