Free Trial
AUSSIE BONDS

Bid Underpinned

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 Access

Treasuries Flatten Further Into Extremely Light US Docket

US TSYS
  • Cash Tsys have bull flattened overnight as levels see a partial retracement of Friday's substantial post-payrolls sell-off, helped in part by a dampening in risk with China announcing its intentions to conduct "regular" drills near Taiwan before a limited European morning aside from a small beat in Sentix Investor confidence.
  • Continued hawkish Fedspeak over the weekend (see separate bullet) keeps front-loaded hike expectations at the forefront of market attention and with it 2s10s only just off fresh post-2000 flats seen on the immediate reaction to a storming payrolls report at -41bps vs -44bps, with TD not ruling out -80bps in their payrolls review as the long-end pencils in a greater likelihood of a downturn.
  • 2YY -1.2bps at 3.214%, 5YY -2.2bps at 2.932%, 10YY -2.9bps at 2.799% and 30YY -3.0bps at 3.037%.
  • TYU2 trades 9 ticks higher at 119-21 as it moves off Friday's low of 119-07+ and with support at the 50-day EMA just below at 119-05+. Resistance is seen at 120-29 (Aug 4 high). Volumes are low but typically so for this time of year.
  • No data or scheduled Fedpseak on an empty docket aside from bill issuance with US Tsy $54B 13W, $42B 26W bill auctions at 1130ET.
196 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • Cash Tsys have bull flattened overnight as levels see a partial retracement of Friday's substantial post-payrolls sell-off, helped in part by a dampening in risk with China announcing its intentions to conduct "regular" drills near Taiwan before a limited European morning aside from a small beat in Sentix Investor confidence.
  • Continued hawkish Fedspeak over the weekend (see separate bullet) keeps front-loaded hike expectations at the forefront of market attention and with it 2s10s only just off fresh post-2000 flats seen on the immediate reaction to a storming payrolls report at -41bps vs -44bps, with TD not ruling out -80bps in their payrolls review as the long-end pencils in a greater likelihood of a downturn.
  • 2YY -1.2bps at 3.214%, 5YY -2.2bps at 2.932%, 10YY -2.9bps at 2.799% and 30YY -3.0bps at 3.037%.
  • TYU2 trades 9 ticks higher at 119-21 as it moves off Friday's low of 119-07+ and with support at the 50-day EMA just below at 119-05+. Resistance is seen at 120-29 (Aug 4 high). Volumes are low but typically so for this time of year.
  • No data or scheduled Fedpseak on an empty docket aside from bill issuance with US Tsy $54B 13W, $42B 26W bill auctions at 1130ET.