MNI BRIEF: US Budget Deficit $367B In Nov; FYTD Record $624B

MNI BRIEF: Former BOC Dep Beaudry Sees 2.75%-3% Rate In 2025

BOC WILL BE CONSDIERING FURTHER RATE CUTS

MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: US NOV TREASURY BUDGET -$366.8B

EZ/UK Bond Supply Calendar: BTP Auction on Thursday

US EIA: CRUDE OIL STOCKS EX SPR -1.42M TO 422.0M DEC 06 WK

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

FI Round-Up: Ylds Recede, Option Plays Fade Aggressive Hikes

US TSYS SUMMARY
Combination of technical support on the heels of Tuesday's sharp rout in rates and geopolitical tensions over Russia/Ukraine helped Treasury markets regain some ground Wednesday.
  • On the day, 10YY fell from 1.9006% high to 1.8199% low, 1.8306% after the bell; 30YY from 2.2134% high to 2.1352% low, 2.1426% after the bell.
  • Contributing factors: 10Y German Bund yield went positive briefly amid growing concern over supply chain shortages weighing on German economy.
  • With underlying futures rebound, accts looked to hedge cooling in tighter policy expectations priced into Whites (EDH2-EDZ2 with four .25bp quarterly hikes starting in March): +70,000 Jun 99.25/99.37/99.50 call flys, 2.25 with Jun'22 futures trading 99.225. In that vein: fading tighter policy move by the Fed via put condor sale: -10,000 Jun 99.06/99.18/99.31/99.43 put condors at 4.25.
  • Limited react to data, Housing starts 1.4% vs. -1.7% est, Permits 9.1% vs. -0.8% est; Redbook JAN STORE SALES +14.8%. MNI's Chicago Business Barometer, was revised up to 64.3 in December from 63.1, as a result of the annual seasonal adjustment recalculation. Despite the upwards revision at the end of the year, in aggregate, the Barometer was revised down by -0.1 point in 2021 and revised up by +0.1 point in 2020.
  • Tsy futures held near session highs following brief two-way following $20B 20Y note auction re-open (912810TC2) stop-through: 2.210% high yield vs. 2.220% WI; year high 2.48x bid-to-cover better than last month's 2.59x.
  • The 2-Yr yield is down 2bps at 1.0225%, 5-Yr is down 4.7bps at 1.6113%, 10-Yr is down 4.6bps at 1.8271%, and 30-Yr is down 4.8bps at 2.1396%.
BulletMarketsFixed Income BulletsHomepage
BulletMarketsFixed Income BulletsHomepage

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.