Free Trial
UK DATA

Retail sales due at 7:00BST

SCHATZ TECHS

(U2) Trims Losses into Close

EUROZONE ISSUANCE

EGB Supply For W/C July 18, 2022

BOBL TECHS

(U2) Bounces Off Low

EUROZONE T-BILL ISSUANCE

W/C July 18, 2022

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Falling Breakevens Help Cap Yield Gains

US TSYS

Treasuries traded weaker Friday, with a renewed rise in short-end yields bear flattening the curve.

  • In a week dominated by big swings in Treasury yields and big equity declines, oil stole the show Friday, with WTI dropping 6.8% on the session.
  • This helped 5Y and 10Y TIPS-implied breakevens fall to the lowest levels since February. In turn, that helped cap yield gains in an otherwise risk-on session, with the Nasdaq rallying in the afternoon.
  • The 2-Yr yield is up 5.8bps at 3.1512%, 5-Yr is up 4.2bps at 3.326%, 10-Yr is up 2.9bps at 3.2237%, and 30-Yr is up 3.4bps at 3.2812%.
  • Fed communications (George, Bullard, Kashkari) generally leaned hawkish where they leaned at all (nothing new from Chair Powell), helping pull short-end yields off session lows.
  • Data (industrial production, leading index) added to the recent string of concerning reports but didn't draw any market reaction.
  • With a market holiday Monday, attention will swiftly turn to Powell's congressional testimony next Weds and Thurs.
157 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Treasuries traded weaker Friday, with a renewed rise in short-end yields bear flattening the curve.

  • In a week dominated by big swings in Treasury yields and big equity declines, oil stole the show Friday, with WTI dropping 6.8% on the session.
  • This helped 5Y and 10Y TIPS-implied breakevens fall to the lowest levels since February. In turn, that helped cap yield gains in an otherwise risk-on session, with the Nasdaq rallying in the afternoon.
  • The 2-Yr yield is up 5.8bps at 3.1512%, 5-Yr is up 4.2bps at 3.326%, 10-Yr is up 2.9bps at 3.2237%, and 30-Yr is up 3.4bps at 3.2812%.
  • Fed communications (George, Bullard, Kashkari) generally leaned hawkish where they leaned at all (nothing new from Chair Powell), helping pull short-end yields off session lows.
  • Data (industrial production, leading index) added to the recent string of concerning reports but didn't draw any market reaction.
  • With a market holiday Monday, attention will swiftly turn to Powell's congressional testimony next Weds and Thurs.