Trial now

Tepid Demand For Yen


(Z1) Strong Weekly Close


Market Closure


Nothing On Local Docket, Omicron Eyed

US TSYS: T-Notes -0-02+ at 130-26 as we type.
- Coronavirus worry drove a strong safe-haven bid for rates on Monday, with
T-Notes closing just shy of best levels on strong volume, with bull flattening
the order of the day on the curve (yields 5.5 to 7.5bp lower across the curve at
the close), allowing the 2-/5-Year yield spread to close in inverted territory.
- London hours saw some profit taking creep in, with the contract edging away
from best levels in the NY crossover, before grinding bid again in NY trade.
- The richening meant that the latest round of 2- & 5-Year supply was less than
stellar, with 5s in particular suffering, although this provided little in the
way of respite re: the bid.
- Monday saw bulls fail to mount a sustained challenge of 131-00 in T-Notes, as
yields bottomed out around 1.60%. N.B. some have highlighted large short
positioning 131.00 calls
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |