Free Trial

Treasuries traded lower Wed after...>

US TSYS SUMMARY
US TSYS SUMMARY: Treasuries traded lower Wed after morning selloff, UK Gilt
slide, German Bunds decline. Tsys had weaker NY opening due to EGB weakness
after Bunds pressured by inflation data, Gilts by UK/EU Brexit pact. 
- Tsys selling amid higher than expected 3.3% 3Q GDP growth; PCE revised
modestly lower to +2.3%. Tsys also had corporate rate-locks amid a five-part
Alibaba Grp deal, other heavy issuance. 
- The market digested 11:13am ET block sale of 3,135 WNH Mar Ultra Bond futrs,
followed ealry buy of 10,000 TYZ Tsy futures, then 8:57am ET block trade of
7,255 WNH Mar Ultra Bond futrs at 165-01 (vs. 165-08 bid price at time.) 
- Tsys hurt early by blk-box selling in US 10Y, 30Y amid firm US$/yen; but some
reversed amid weak US$/yen later (Y111.9295 now; early high Y112.15). Gold
hammered in morning. Tsys saw early steepeners, flatteners unwind, real$ and
bank portf sales in 10s, 30Y. Also rate receiving in 30s, while fast$ and prop
accts did 2way flow in 5Y, 10Y. Tsys saw deal-tied sales across cure. Talk of a
$39B order book for Alibaba 5part debt deal. US high-tech stocks and chip stocks
hurt, Nasdaq -1.31%, while S&P 500 off 0.11% and DJIA up 0.30% on the day. 

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.