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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.
US TSYS
- Treasury futures are little changed this morning, volumes are low and what is trading is largely roll related. TUU4 is unchanged at 103-10¾, while TYU4 is + 00+ at 113-19+.
- Treasury auction cycle begins later today with $69b 2-year note, while $70b 5-year and $44b 7-year following later in the week, at current levels all three auctions would be the lowest-yielding ones in more than a year.
- Cash treasury yields are flat to 0.5bp lower, the 10yr yield is trading near yearly lows at 3.812%.
- Fed funds futures are currently pricing in 32bps of cuts for the September meeting, pricing has softened 3-4bps into year-end with 100bps of cuts now priced for the December meeting.
- The 10yr yield has shown correlation with oil prices recently and with a 7% rise in oil from August lows which has been driven by geopolitical tensions in the Middle East, we could could see potential upward pressure on yields, see chart.
US 10yr yield vs Oil price
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.
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