Trial now

Heads North


Bearish Cycle Still In Play


Death Cross Adding Pressure


Risk Off Prompts Safe Haven Demand

US TSYS: U.S. Tsys have started the week on the backfoot, with broader markets
seemingly breathing a sigh of relief after the U.S. China trade spat failed to
escalate further over the weekend, with Asia-Pacific equities broadly higher, as
the major fixed income benchmarks edge lower and the yuan firms. 
- It is also worth noting that the uptick in risk appetite has taken place
despite U.S. Secretary of State Mike Pompeo dismissing North Korea's accusation
of a "gangster-like mindset" in denuclearization talks, saying the two nations
had productive conversations that will continue in the days ahead.
- The belly of the curve has experienced some modest underperformance, with eyes
on 3-, 10- & 30-Year supply due later this week. While there are plenty of U.S.
risk events to digest including Fed Chairman Powell's semi-annual MonPol report,
U.S. CPI, PPI & University of Michigan sentiment. Fedspeak elsewhere will
dominate, with Williams, Kashkari, Harker & Bostic due up.
- The Eurodollar strip has edged lower, with the reds 1.5-2.0 ticks lower, with
the further out contracts moving in parallel.
- T-Notes last at 120.07, U.S. 10-Year Tsy yields last at 2.842%.
MNI London Bureau | +44 0203-865-3809 |