Free Trial
RBA

VIEW: WSJ's Glynn Outlines RBA View

US TSY FUTURES

TY Blocked

JGBS AUCTION

PREVIEW: 5-Year JGB Supply Due

US TSY FUTURES

TY Blocked

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

Tsys Finish Near Highs, BoE Surprise Bond Buy Program

US TSYS
Tsys finish broadly higher/near highs, curves reversed early steepening to bull flattening after the BoE annc'd a surprise temporary bond buying commitment (GBP5B, over 20Y maturity) ahead the NY open.
  • The vast majority of the GBP1.025bln in offers accepted by the BoE were made up of two Gilts: 1.25% Jul-51 (GBP670.1mln) and 3.75% Jul-52 (GBP157.7mln). Going forward the BoE will hold daily operations from 14:15-14:45 UK time until 14 Oct. Size is set at the same GBP5bln for future auctions although the BOE "retains the discretion to alter any of the terms at any time"
  • Still off pre-BOE tax cut annc levels w/ 30YY currently at 3.6763 (-.1491) Yield curves initially bull steepened to new highs (2s10s -23.62) before reversing and snapping flatter (2s10s -4.681 to -39.084 after the bell).
  • Any reaction to Inventories data (and multiple Fed speakers on the session, for that matter) were lost in the shuffle: August reading of the Advance Goods Trade Balance -$87.3B vs. -89.0B est, preliminary August reading of Wholesale Inventories is +1.3% MoM vs. +0.4$ est.
  • Tsys holding near highs after $36B 7Y note auction (91282CFL0) stops through: 3.898% high yield vs. 3.905% WI; 2.57x bid-to-cover vs. 2.65x last month.
  • The 2-Yr yield is down 19.9bps at 4.0836%, 5-Yr is down 26.4bps at 3.9202%, 10-Yr is down 24bps at 3.7052%, and 30-Yr is down 14.7bps at 3.6781%.
221 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.
Tsys finish broadly higher/near highs, curves reversed early steepening to bull flattening after the BoE annc'd a surprise temporary bond buying commitment (GBP5B, over 20Y maturity) ahead the NY open.
  • The vast majority of the GBP1.025bln in offers accepted by the BoE were made up of two Gilts: 1.25% Jul-51 (GBP670.1mln) and 3.75% Jul-52 (GBP157.7mln). Going forward the BoE will hold daily operations from 14:15-14:45 UK time until 14 Oct. Size is set at the same GBP5bln for future auctions although the BOE "retains the discretion to alter any of the terms at any time"
  • Still off pre-BOE tax cut annc levels w/ 30YY currently at 3.6763 (-.1491) Yield curves initially bull steepened to new highs (2s10s -23.62) before reversing and snapping flatter (2s10s -4.681 to -39.084 after the bell).
  • Any reaction to Inventories data (and multiple Fed speakers on the session, for that matter) were lost in the shuffle: August reading of the Advance Goods Trade Balance -$87.3B vs. -89.0B est, preliminary August reading of Wholesale Inventories is +1.3% MoM vs. +0.4$ est.
  • Tsys holding near highs after $36B 7Y note auction (91282CFL0) stops through: 3.898% high yield vs. 3.905% WI; 2.57x bid-to-cover vs. 2.65x last month.
  • The 2-Yr yield is down 19.9bps at 4.0836%, 5-Yr is down 26.4bps at 3.9202%, 10-Yr is down 24bps at 3.7052%, and 30-Yr is down 14.7bps at 3.6781%.