MNI BRIEF: Canada Warns Of Pain To U.S. From Trump Tariffs

MNI: FED TO GRADUALLY MOVE TOWARD NEUTRAL OVER TIME -MINUTES

MNI BRIEF: EC Sees Slight 2025 Euro Fiscal Contraction

MNI China Daily Summary: Tuesday, November 26

MNI BRIEF: China Supports Globalisation Despite Turbulence

MNI: PBOC Net Injects CNY11.0 Bln via OMO Tuesday

EZ/UK T-Bill Calendar: Greece, Italy Auction on Wedesday

EZ/UK Bond Supply Calendar: Italy, Finland Auction on Thursday

MNI: US OCT NEW HOME SALES -17.3% TO 0.610M SAAR

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

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

Tsys Have That Heavy Feeling, FOMC Next Week

US TSYS SUMMARY
Tsys traded broadly weaker/near lows late Friday, yields making new one-year highs, steeper yield curves climbing back to near 7 year highs tapped Feb 25. Much of the initial choppy sell-off occurred overnight as Tsys followed Bunds lead lower for second day, US$ strength persisted. Focus on next week's FOMC and BoE policy announcements.
  • Not much of a react to PPI, more or less in-line with expectations (FINAL DEMAND PPI +0.5%, EX FOOD, ENERGY +0.2%). Tsy futures holding to relative narrow range -- near lows over last four hours. Moderate buying in 10s-30s was short lived.
  • Lack of clarity adding to pressure in rates: another day closer to Supplementary leverage ratio (SLR) exemption expiration on Wed, Mar 31, and still no word from Fed gov's over extending (widely expected) or letting it expire -- necessitating banks to scale back their deposits, reserves, and Tsy holdings.
  • Decent option trade, put buys/heading rate hikes in late '22 through '23 continue; vol sale on range: Block, -40,000 short Sep 96/97 strangles, 12.0 vs. 99.67, -5.6k more/screen. Salient Tsy option highlight: +32,000 TYM 129/130/131/132 put condors 12 on screen.
  • The 2-Yr yield is up 1bps at 0.149%, 5-Yr is up 5.9bps at 0.8449%, 10-Yr is up 9.7bps at 1.6335%, and 30-Yr is up 10.6bps at 2.4005%.
BulletMarketsFixed Income Bullets
BulletMarketsFixed Income Bullets

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.