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Still In A Bear Cycle


Summary: USDBRL Extends Losses To Near 2%


Needle Still Points North


Focus on Midweek BoC, ECB Policy Announcements


EUR Crosses Come Under Pressure As ECB Beckons

Tsy futures trading firmer, just off...>

US TSY FLOWS: Tsy futures trading firmer, just off top end late overnight highs,
recovering portion of Wed's second half slide on word of 3M debt ceiling
extension. EGBs quiet ahead ECB policy annc. Equities little weaker (emini
-0.25, 2463.5), gold stronger (+5.15, 1339.34), oil weaker (WTI -0.08, 49.08).
- Asia, safe haven bid for Tsys return after North Korea said will respond to US
pressure with counter measures; pundits expecting some show of force around Sep
9 National Day holiday. Flow included prop and bank buying in 10s, insurance
portfolio buying 10s and 30s.
- London, carry-over bid in early London hours, rates ticked higher last couple
hours as USD receded vs. Yen, Euro. Flurry of short covering deal-tied flow and
fast$ buying in 10s. Wall Street Journal said Gary Cohn no longer in the running
for Fed Chair but that John Taylor, Larry Lindsey and and Kevin Warsh are the
potential choices now.
- Swaps, spds running mildly wider, spd curve flatter, modest paying in 2s, 5s
and 10s over last hour.
- Eurodollars, mildly higher, top end O/N range on moderate volume Whites-Reds.
MNI Chicago Bureau | +1 312-431-0089 |
MNI Chicago Bureau | +1 312-431-0089 |