Free Trial
OIL PRODUCTS

Diesel Cracks Follow Crude Higher

US EURODLR FUTURES

Post-LIBOR Settle Update: Futures Gain, Benchmark Pace Slows

EMERGING MARKETS

CEEMEA FX Price Signal Summary - USDTRY Uptrend Extends

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

TYU2 Little Changed Early This Week

US TSYS

TYU2 operates around late NY levels, last dealing +0-00+ at 121-05, with e-minis a touch softer early on. It would seem that the latter is softening on the back of weaker than expected official Chinese manufacturing PMI data released over the weekend (which saw a slump back into contractionary territory), in addition to continued Sino-U.S. tensions surrounding the potential journey to Taiwan by U.S. House Speaker Pelosi (note that Taiwan was not on her initial trip itinerary released over the weekend, while China conducted military drills in the Taiwan Strait as some of the more nationalist Chinese press outlets issued warnings re: any such visit). Elsewhere, Minneapolis Fed President Kashkari (’23 voter) stressed the Fed is a long way from where it needs to be in its fight against inflation, flagging his surprise re: the market’s interpretation of the central bank’s language.

  • To recap, the long end of the curve more than unwound its pre-NY weakness on Friday, with the curve twist flattening as the major benchmark yields finished 2bp cheaper to 3bp richer, pivoting around the 3- to 5-Year zone, while 10s proved to be the strongest point on the curve.
  • Some stronger than expected national GDP data out of Europe provided pressure during early London dealing (German data was the exception to that particular rule), while firmer than expected CPI data out of Europe also helped the move lower. Marginal beats across the PCE data suite and ECI print helped Tsys tap a fresh session low in early NY dealing before a bit of a base was found, with that move accelerating further on the back of a slower than expected rate of expansion in the latest MNI Chicago PMI print.
  • Note that space moved away from best levels into the bell as the month-end vol. ensued. This left the space comfortably off of extremes at the close.
  • Caixin manufacturing PMI data out of China headlines the Asia-Pac docket, with the final manufacturing PMI prints out of Europe also due before U.S. hours. The ISM manufacturing survey and final S&P m’fing PMI print provide the highlights of Monday’s NY data docket.
353 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.

TYU2 operates around late NY levels, last dealing +0-00+ at 121-05, with e-minis a touch softer early on. It would seem that the latter is softening on the back of weaker than expected official Chinese manufacturing PMI data released over the weekend (which saw a slump back into contractionary territory), in addition to continued Sino-U.S. tensions surrounding the potential journey to Taiwan by U.S. House Speaker Pelosi (note that Taiwan was not on her initial trip itinerary released over the weekend, while China conducted military drills in the Taiwan Strait as some of the more nationalist Chinese press outlets issued warnings re: any such visit). Elsewhere, Minneapolis Fed President Kashkari (’23 voter) stressed the Fed is a long way from where it needs to be in its fight against inflation, flagging his surprise re: the market’s interpretation of the central bank’s language.

  • To recap, the long end of the curve more than unwound its pre-NY weakness on Friday, with the curve twist flattening as the major benchmark yields finished 2bp cheaper to 3bp richer, pivoting around the 3- to 5-Year zone, while 10s proved to be the strongest point on the curve.
  • Some stronger than expected national GDP data out of Europe provided pressure during early London dealing (German data was the exception to that particular rule), while firmer than expected CPI data out of Europe also helped the move lower. Marginal beats across the PCE data suite and ECI print helped Tsys tap a fresh session low in early NY dealing before a bit of a base was found, with that move accelerating further on the back of a slower than expected rate of expansion in the latest MNI Chicago PMI print.
  • Note that space moved away from best levels into the bell as the month-end vol. ensued. This left the space comfortably off of extremes at the close.
  • Caixin manufacturing PMI data out of China headlines the Asia-Pac docket, with the final manufacturing PMI prints out of Europe also due before U.S. hours. The ISM manufacturing survey and final S&P m’fing PMI print provide the highlights of Monday’s NY data docket.