MNI BRIEF: Canadians Fuzzy On How BOC Hikes Slow CPI, Government's Role

CANADA FLASH MAY GDP +0.1% ON FACTORIES AND REAL ESTATE

MNI China Daily Summary: Friday, June 28

MNI BRIEF: BCB Evaluating Real Depreciation Impacts - Galipolo

MNI BRIEF: PBOC Pledges to Curb Any Overshoot Of The Yuan: MPC

MNI: PBOC Net Injects CNY40 Bln Via OMO Fri; Rates Unchanged

MNI: BAKER HUGHES US RIG COUNT 581; OIL RIGS 479; GAS RIGS 97

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

EZ/UK Bond Supply Calendar: BoE APF on Monday

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

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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

Sell-side Views Ahead of 7y Auction

US TSYS
Homepagemarkets-real-timeBulletMarketsFixed Income Bullets
Just under 10 minutes out from the 7y auction - sell-side views pre-auction:
  • BMO: There has been a considerable backup in Treasury yields over the last couple of weeks leaving today's 7-year auction in a position to clear >4.50% for the fourth time this cycle. With 7-year rates trading >25 bp off the post-CPI lows and 7s having more-than-erased all the gains made in the wake of April's NFP/CPI releases, a subset of dip-buyers may be emboldened by the magnitude of the outright cheapening. On net, the extension of the selloff in the wake of yesterday's supply events leaves us incrementally more encouraging to see stronger end-user demand for 7s versus 2s and 5s, though we're biased for a small tail this afternoon.
  • JPM: The 7-year sector has outperformed along the curve over the month and now appears rich to the wings. With yields near the middle of recent ranges and the sector appearing somewhat rich along the curve, they think the auction should require some further concession in order to be digested smoothly.
173 words

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.
Just under 10 minutes out from the 7y auction - sell-side views pre-auction:
  • BMO: There has been a considerable backup in Treasury yields over the last couple of weeks leaving today's 7-year auction in a position to clear >4.50% for the fourth time this cycle. With 7-year rates trading >25 bp off the post-CPI lows and 7s having more-than-erased all the gains made in the wake of April's NFP/CPI releases, a subset of dip-buyers may be emboldened by the magnitude of the outright cheapening. On net, the extension of the selloff in the wake of yesterday's supply events leaves us incrementally more encouraging to see stronger end-user demand for 7s versus 2s and 5s, though we're biased for a small tail this afternoon.
  • JPM: The 7-year sector has outperformed along the curve over the month and now appears rich to the wings. With yields near the middle of recent ranges and the sector appearing somewhat rich along the curve, they think the auction should require some further concession in order to be digested smoothly.