Free Trial

*** Trading higher but inching......>

US TSYS SUMMARY
US TSYS SUMMARY: *** Trading higher but inching off highs early in the second
half, Tsy curve bull flattened Thursday, midmorning move more than making up for
Wed's post FOMC price action amid relatively quiet trade. Equities traded weaker
(emini -3.0, 2502.25), gold added to Wed's sell-off (-8.0, 1293.18).
- Post FOMC positioning, mkt pricing in a 68.8% chance of hike at the Dec 13
FOMC. 
- Large Block buys (appr 26k TYZ from 125-23.5 to -24.5) prior to weekly claims
(-23k to 259k), otherwise little/no react to data. Tsys bolstered by cross-mkt
support as German Bunds gained.
- Return of corporate and supra-sovereign debt issuance generated some early
hedging. Traders set shorts into 1pm ET $12B 10Y TIPS reopening.
- Swap spds held narrow range, accts have been sporadically fading the
flattening in Tsy curve, scaling into the curve trade w/better front end
receiving since the FOMC annc. 
- Large pick-up in Eurodollar option trading, with some one-off bear
positioning, larger flow faded the increased chances of Dec rate hike

To read the full story

Close

Why 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.