- PolicyPolicy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: - G10 MarketsG10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI Podcasts - Emerging MarketsEmerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
- CommoditiesCommodities
Real-time insight of oil & gas markets
- Data
- MNI ResearchMNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
- About Us
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 AccessUS$ Credit Supply Pipeline
US Treasury Auction Calendar
Tight In Asia After Wednesday's Twist Steepening
The Asia-Pac session lacked meaningful inputs, which allowed the core global bond markets to operate in narrow ranges on light volume
- T-Notes stuck to a 0-03 range, last -0-02+ at 131-24, with cash Tsys running little changed to 1.0bp richer across the curve. A quick look at the latest round of Japanese BoP data revealed that Japanese investors shed a net Y563.4bn of U.S. Tsys in the month of February, representing the first round of monthly net sales witnessed since August.
- As a reminder, the cash Tsy curve twist steepened on Wednesday, pivoting around the 5- to 7-Year sector, with Tsys out to 5-Years richening by ~0.5bp, while 30s cheapened by ~4.0bp on the day. Broader Fedspeak offered little new on net, with the minutes from the latest FOMC meeting consistent with Fed Chair Powell's messaging. In terms of the short end, the minutes noted that "the Federal Reserve could consider adjusting its administered rates if undue downward pressure on overnight rates emerged. Responses to the Desk surveys indicated that many market participants anticipated adjustments to the interest on excess reserves rate and the ON RRP rate at or before the June meeting." This triggered selling of FFK1 (both outright and vs. FFJ1), but it was an earlier round of 20K lots of block buying of the Eurodollar red pack that headlined on the flow side during NY hours, providing some support to the shorter end of the Tsy curve in the process. Elsewhere, Tsy Secretary Yellen released a proposal to raise ~$2.5tn in tax revenues over a 15-Year period.
- Weekly jobless claims data, Fedspeak from Powell, Kashkari & Bullard and the mid-month auction announcement headline locally on Thursday.
To read the full story
Sign up now for free access to this content.
Please enter your details below and select your areas of interest.
Why Subscribe to
MNI
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.