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Needle Still Points South


Yields Bounce as Equities Make New Monthly Highs


Heading North


Bull Rally Accelerates


Economists Survey Raises 2021 CPI Forecast To 4.9%

US TSYS: T-Notes head a 0-03+ range overnight, last -0-01 at 139-05, as yields
sit unch.-1.1bp richer across the curve. Little to note for the space, with
comments from Chinese diplomat Wang apparently signalling the potential for the
resumption of Sino-U.S. talks, across all levels, based on mutual sincerity.
Elsewhere, Sino-Antipodean tensions surrounding Hong Kong have moved up a level.
- The tone of Wednesday's Fedspeak was largely consistent with the respective
policymakers' recent rounds of rhetoric, although comments from non-voter
Bullard drew the most attention. He discussed employment matters with CNBC,
noting: "Seems to me like by the end of the year you can get down certainly to
single digits, probably even below 8%, maybe 7% by the end of the year."
- U.S. COVID-19 case numbers' impact on the market has waned in recent times
(for the most part), and it would likely take a meaningful swing higher for
those metrics and/or the mortality rate to generate a notable reaction in
broader markets. Vaccine news remains positive at the margins.
- 10-Year supply: cover > avg, dealer takedown < avg, stopped thru WI by 1.0bp.
- 30-Year supply, weekly jobless claims and Fedspeak from Bostic due today.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |