TEST FROM BANK OF CANADA, PLEASE IGNORE

MNI BRIEF: US Existing Home Sales Fall 5.4% To 3.89M In June

MNI BRIEF: China Wants U.S. Firms To Deepen Investment

MNI China Daily Summary: Tuesday, July 23

MNI: PBOC Net Drains CNY408.7 Bln Via OMO Tues

MNI: PBOC Sets Yuan Parity Lower At 7.1334 Tues; -1.30% Y/Y

EZ/UK T-Bill Calendar: 26-Week GTB Auction on Wednesday

EZ/UK T-Bill Calendar: 26-Week GTB Auction on Wednesday

EZ/UK Bond Supply Calendar: UK, Germany Auction on Wednesday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Treasury Futures Edge Lower On Higher PMIs

US TSYS
Homepagemarkets-real-timeBulletMarketsFixed Income Bullets

Treasury futures remain weaker after post the NY close but off midmorning lows after higher than expected flash PMIs, the flash data had sapped the early risk-on tone with S&P Eminis and Nasdaq indexes marking new all-time highs before extending lows amid several rounds of program selling/profit taking ahead of the extended Memorial holiday weekend.

  • Jun'24 10Y futures closed the day down (- 10+) at 108-23, but off session lows of 108-17+, we have opened unchanged from NY closing levels at 108-23.
  • Treasuries traded lower Thursday on the back of strong PMI data, extending the pullback from the recent 109-31+ high on May 16. Support to watch lies at 108-15 (May 14 lows), on the upside initial resistance is 109-07 (50-day EMA).
  • The treasury bear-flattened on Thursday with yields 4-7bps higher, the 2Y yield +6.6bps at 4.935%, 10Y +5.5bps to 4.477%, while the 2y10y -1.329 at -46.281
  • US data: ervices PMI (54.8 vs. 51.2 est) and Composite PMI (54.4 vs. 51.2 est) while Manufacturing PMI slightly higher (50.9 vs. 49.9 est). Chicago Fed Nat Activity Index (-0.23 vs. 0.13 est), Initial Jobless Claims (215k vs 220k est) while Continuing Claims (1,794k vs. 1,793k est) and New Home Sales (634k vs 678k est)
  • Rate cut projections have receded vs late Wednesday levels (*): June 2024 at -0% w/ cumulative rate cut 0.0bp at 5.328%, July'24 at -10.0% (-16.0%) w/ cumulative at -2.5bp (-5.2bp) at 5.302%, Sep'24 cumulative -14.2bp (-17.8bp), Nov'24 cumulative -21.2bp (-26.2bp), Dec'24 -34.8bp (-40.6bp).
  • Looking ahead: Durables/Cap Goods and the latest UofM Sentiment while June Treasury options expire as well.
256 words

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.

Treasury futures remain weaker after post the NY close but off midmorning lows after higher than expected flash PMIs, the flash data had sapped the early risk-on tone with S&P Eminis and Nasdaq indexes marking new all-time highs before extending lows amid several rounds of program selling/profit taking ahead of the extended Memorial holiday weekend.

  • Jun'24 10Y futures closed the day down (- 10+) at 108-23, but off session lows of 108-17+, we have opened unchanged from NY closing levels at 108-23.
  • Treasuries traded lower Thursday on the back of strong PMI data, extending the pullback from the recent 109-31+ high on May 16. Support to watch lies at 108-15 (May 14 lows), on the upside initial resistance is 109-07 (50-day EMA).
  • The treasury bear-flattened on Thursday with yields 4-7bps higher, the 2Y yield +6.6bps at 4.935%, 10Y +5.5bps to 4.477%, while the 2y10y -1.329 at -46.281
  • US data: ervices PMI (54.8 vs. 51.2 est) and Composite PMI (54.4 vs. 51.2 est) while Manufacturing PMI slightly higher (50.9 vs. 49.9 est). Chicago Fed Nat Activity Index (-0.23 vs. 0.13 est), Initial Jobless Claims (215k vs 220k est) while Continuing Claims (1,794k vs. 1,793k est) and New Home Sales (634k vs 678k est)
  • Rate cut projections have receded vs late Wednesday levels (*): June 2024 at -0% w/ cumulative rate cut 0.0bp at 5.328%, July'24 at -10.0% (-16.0%) w/ cumulative at -2.5bp (-5.2bp) at 5.302%, Sep'24 cumulative -14.2bp (-17.8bp), Nov'24 cumulative -21.2bp (-26.2bp), Dec'24 -34.8bp (-40.6bp).
  • Looking ahead: Durables/Cap Goods and the latest UofM Sentiment while June Treasury options expire as well.