Free Trial
USDCAD TECHS

Impulsive Rally Extends

US TSYS

Late Eurodollar/SOFR/Treasury Option Roundup

EURJPY TECHS

Price Is Below The 50-Day EMA

US

Late Corporate Credit Update

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

Twisting Flatter On Tuesday

US TSYS

A flat re-open for TYU2, which deals around late NY levels, last +0-00+ at 119-13.

  • The cash Tsy curve twist flattened on Tuesday, with benchmark Tsys running 10bp cheaper to 1bp richer come the bell, pivoting around the 20-Year zone. Longer dated paper was more willing to retrace losses observed in the NY morning, after weakness was triggered by stronger than expected industrial production data (albeit with softer than expected housing starts data observed, an outcome that was partially aided by positive revisions) and perhaps some influence from north of the border on firmer than expected Canadian core CPI readings. Spill over from the Gilt market may have also provided some flattening impetus after the latest round of UK labour market data resulted in an uptick in BoE rate hike premium.
  • IG issuance also helped activity, although volumes were still sub-par on the day.
  • The latest RBNZ monetary policy decision provides the headline risk event during Asia-Pac hours. Note that a 50bp rate hike is seen as a foregone conclusion, so focus should quickly shift to the language deployed by the Bank, in addition to its updated OCR track projections. UK CPI data will then provide some interest during London hours, as will Eurozone GDP. Further out, Wednesday’s NY docket consists of the minutes from the most recent FOMC meeting, retail sales data, weekly MBA mortgage apps. 20-Year Tsy supply and Fedspeak from Governor Bowman (although the topics of the discussion may limit the room for comments on monetary policy).
250 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.

A flat re-open for TYU2, which deals around late NY levels, last +0-00+ at 119-13.

  • The cash Tsy curve twist flattened on Tuesday, with benchmark Tsys running 10bp cheaper to 1bp richer come the bell, pivoting around the 20-Year zone. Longer dated paper was more willing to retrace losses observed in the NY morning, after weakness was triggered by stronger than expected industrial production data (albeit with softer than expected housing starts data observed, an outcome that was partially aided by positive revisions) and perhaps some influence from north of the border on firmer than expected Canadian core CPI readings. Spill over from the Gilt market may have also provided some flattening impetus after the latest round of UK labour market data resulted in an uptick in BoE rate hike premium.
  • IG issuance also helped activity, although volumes were still sub-par on the day.
  • The latest RBNZ monetary policy decision provides the headline risk event during Asia-Pac hours. Note that a 50bp rate hike is seen as a foregone conclusion, so focus should quickly shift to the language deployed by the Bank, in addition to its updated OCR track projections. UK CPI data will then provide some interest during London hours, as will Eurozone GDP. Further out, Wednesday’s NY docket consists of the minutes from the most recent FOMC meeting, retail sales data, weekly MBA mortgage apps. 20-Year Tsy supply and Fedspeak from Governor Bowman (although the topics of the discussion may limit the room for comments on monetary policy).