Free Trial

Several regional factors during Asia........>

US TSYS: Several regional factors during Asia hours allowed Tsys to reverse
their early, albeit moderate, weakness, which was likely a result of regional
participants reacting to the latest FOMC decision. T-Notes last +0-00+ at
129-13, with yields 0.8-1.7bp lower across the curve & modest bull flattening
evident. Not much in the way of a standout flow, but a 2.0K buyer of TYZ9 helped
the contract to best levels in recent trade.
- As a reminder, the Fed delivered a 25bp cut to the Fed Funds tgt range, with a
30bp cut to the IOER in the wake of the latest $ funding stresses. There were 2
hawkish dissents, with Rosengren & George holding that particular torch for a
2nd straight meeting, while Bullard voted for 50bp cut. Only 7 dots in the
updated dot plot look for 1 further cut in '19. Chair Powell went to great pains
to disassociate this week's funding issues with real econ impact/MonPol.
Importantly, he kept repeating data-dependence, which was probably inevitable
given the split in the FOMC & the steady flow of decent data. But for a rates
mkt that went in pricing more than a mid-cycle adj., that was a disappointment.
- The NY Fed will conduct overnight repo ops again on Thursday.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

To read the full story



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.