Free Trial
NEW ZEALAND

ASB: Stagflation On The Horizon

JPY

Yen Unwinds Recent Outperformance

NEW ZEALAND

ANZ: Inflation Blues

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

Tsy Turn Weaker Late, US$ Tops Pandemic Peak, Earnings Continue

US TSYS

Rates trade weaker across the board after the bell -- short end support evaporating late as broader markets watch the surge in US$ strength, DXY $ index +.684 at 102.986 vs. 103.282 high -- 5-year highs as it breached pandemic peak of around 102.992 earlier.

  • Confluence of likely drivers: ongoing adjustment in Fed tightening cycle - rush to neutral, safe haven, month-end, and knock on efforts from PBoC to counter CNY strength/promote domestic growth all amid lack of market depth.
  • FI futures had traded firmer after huge miss in March goods trade balance this morning: record deficit of -125.3B vs -106.3B expected. While exports climbed 7.2%, imports surged 11.5% MoM.
  • Curve steepening had already been underway prior to the mildly weak 5Y auction (2.785% high yld vs. 2.777 WI), primary dealer take-up of 16.52% said to "soften the sting" of drop in bid-to-cover from 2.53x to 2.41x.
  • Late focus turned to slew of new earnings after the close: Invitation Homes (INVH), Raymond James (RJF), Qualcomm (QCOM), Amgen (AMGN), Ford (F), Meta (FB), PayPal (PYPL) to name a few.
  • On tap for Thursday: Weekly Claims, GDP, KC Fed Mfg index and $44B 7Y Note Sale.
189 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.

Rates trade weaker across the board after the bell -- short end support evaporating late as broader markets watch the surge in US$ strength, DXY $ index +.684 at 102.986 vs. 103.282 high -- 5-year highs as it breached pandemic peak of around 102.992 earlier.

  • Confluence of likely drivers: ongoing adjustment in Fed tightening cycle - rush to neutral, safe haven, month-end, and knock on efforts from PBoC to counter CNY strength/promote domestic growth all amid lack of market depth.
  • FI futures had traded firmer after huge miss in March goods trade balance this morning: record deficit of -125.3B vs -106.3B expected. While exports climbed 7.2%, imports surged 11.5% MoM.
  • Curve steepening had already been underway prior to the mildly weak 5Y auction (2.785% high yld vs. 2.777 WI), primary dealer take-up of 16.52% said to "soften the sting" of drop in bid-to-cover from 2.53x to 2.41x.
  • Late focus turned to slew of new earnings after the close: Invitation Homes (INVH), Raymond James (RJF), Qualcomm (QCOM), Amgen (AMGN), Ford (F), Meta (FB), PayPal (PYPL) to name a few.
  • On tap for Thursday: Weekly Claims, GDP, KC Fed Mfg index and $44B 7Y Note Sale.