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AUSSIE 10-YEAR TECHS

(Z1) Shallow Bounce

USDCAD TECHS

Trend Needle Still Points North

WHITE HOUSE

Biden Losing Support On COVID-19 Strategy: Poll

AUDUSD TECHS

Slide Accelerates

LATAM

Snapshot: USDMXN Set To Post Highest 2021 Close

EURJPY TECHS

Still Looking For Weakness

US TSYS

A pocket of TYM1 futures buying resulted in an uptick from lows in early Asia dealing, before some light pressure for Aussie bonds resulted in some (very modest) pressure for Tsys. T-Notes last -0-00+ at 131-31+, holding to a narrow 0-04 range. Cash Tsys sit little changed to 1.5bp cheaper across the curve. A reminder that late NY trade saw some outperformance for 20s on the back of comments made by NY Fed's Logan, as she pointed to the likelihood of an uptick in 20-Year Tsy purchases from the Fed, as well as a downtick in TIPS purchases given the recent issuance trends (indeed 20s have showed some resilience in Asia-Pac hours, and print at unchanged levels, richening by ~6.5bp on the 10-/20-/30-Year fly since Logan spoke). Asia-Pac flow was headlined by a 5.0K block buyer of the TYM1 132.00 calls.

  • Logan also noted that the Fed will offset downward pressure on money market rates by focusing policy adjustments on its overnight reverse repo facility including possibly expanding counterparty eligibility in coming months.
  • PPI data and Fedspeak from Harker headline locally on Friday. Fedspeak over the last 24 hours or so has reaffirmed the Fed's stance and desire for actual not expected economic outcomes, with an underscoring of its focus on underlying not transitory inflation also evident.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com