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JGB TECHS

(U1) Tilted Higher

AUSSIE 10-YEAR TECHS

(U1) Uptrend Weakening

US TSYS SUMMARY

Bullard Kickstarts Reflation Unwind Theme

AUDUSD TECHS

Fresh 2021 Lows

Stimulus Talks Head Into Overtime

US TSYS SUMMARY

Treasuries are off session lows but the direction of travel remains lower, with stimulus optimism pushing yields higher and the USD lower (DXY touching lowest levels in 6 weeks).

  • Yields across the curve hitting fresh post-June highs, with bear steepening in play again. The 2-Yr yield is up 0.6bps at 0.1492%, 5-Yr is up 1.9bps at 0.3538%, 10-Yr is up 2.5bps at 0.8108%, and 30-Yr is up 2.9bps at 1.6202%. Dec 10-Yr futures (TY) down 4.5/32 at 138-18 (L: 138-13 / H: 138-24.5)
  • Focus remains firmly on Washington today, as we move past House Speaker Pelosi's previously stated Tuesday deadline for a COVID stimulus deal - she and Tsy Sec Mnuchin due to speak today to reconcile outstanding differences in the deal. Pelosi's new 'deadline' is this weekend to get a bill passed by the end of next week (ie ahead of the election); Senate passage remains very much in question though.
  • As with earlier in the week, the calendar is mainly about Fed speakers and not (thin) data. Cleveland's Mester speaks at 1000ET, Minn's Kashkari / Dallas' Kaplan at 1200ET, Richmond's Barkin / VC Quarles at 1300ET, and StL's Bullard at 1645ET. The latest Beige Book is released at 1400ET.
  • We get 20-Yr re-open auction for $22B at 1300ET (preceded at 1130ET by 105-/154-day bill sales totalling $55B). NY Fed buys ~$1.225B of 7.5-30-Yr TIPS.
MNI London Bureau | +44 203-865-3807 | tim.cooper@marketnews.com