Free Trial

*** Tsys trading mixed in late......>

US TSYS SUMMARY: *** Tsys trading mixed in late session, curve back to
flattening after trimming moves into midday, turning out to be two-way
positioning flow on net. US markets returning from extended holiday weekend
w/decent volume belying a quiet week opener. Limited data, focus more on Wed's
IP (0.5% est.). Bill-auctions go off without a hitch.
- Equities reverse early gains extend sell off late (emini -9.25, 2779.50), gold
weaker/off lows (XAU -1.26, 1338.80), oil weaker (WTI -0.63, 63.67).
- Tsys trailed firmer Bund open on heavy early volume (TYH>500k by the open;
inter-dealer broker volume >130%), focus on Reuters ECB story ECB not planning
bond purchase plan changes until March.
- Bid for rates gradually evaporated from midmorning on, Tsy ylds climbing to
positive territory by midday as equities pared gains. Late second half rebound
in long end saw curves resume flattening (2s10s -2.018, 52.429
(54.361H/51.468L); 5s30s -2.018, 48.068 (50.699H/47.967L). 
- Heavy front end Eurodollar selling as rate hike in March gains momentum,
ongoing heavy option flow as well.

To read the full story



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.