Free Trial

Risk-On Gains Momentum

US TSYS
  • Front month Treasury futures remain under pressure after the bell, near session lows as risk-on sentiment tied to a $30B rescue package for First Republic Bank from 11 banks helped equity index futures climbed to highs for the week (ESM3 at 3997.25, nearing firm resistance of 4031.46, 50-day EMA.
  • Front month Treasury futures has 30Y Bonds down 105 at 130-17 (30Y yield 3.7065%), 10Y notes -27 at 114-09 (10Y yield 3.5733%) above initial support of 113-08.5 (March 15 low).
  • As a result of the tone change in risk, short end rates are gradually unwinding the week's rate-cut (25bp) expectations from July out to November now, while the May Fed terminal rate has climbed to 4.915%.
  • Focus turns to Friday's data with Industrial Production, Capacity Utilization, Leading Index and University of Michigan Sentiment on tap.
  • US Tsys have rescheduled today's $60B 4W, $50B 8W bill auctions to 1000ET Friday after technical difficulties prevented today's sale at 1130ET.

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.