RPT-MNI INTERVIEW2: Trump Stagflationary For EZ-ECB's Wunsch

MNI BRIEF: PBOC Launches Outright Reverse Repo For Liquidity

MNI: PBOC Net Injects CNY32.7 Bln via OMO Monday

MNI: PBOC Sets Yuan Parity Higher At 7.1307 Mon; +2.71% Y/Y

CHINA PBOC CONDUCTS CNY241.6 BLN VIA 7-DAY REVERSE REPOS MON

CHINA SETS YUAN CENTRAL PARITY AT 7.1307 MON VS 7.1090

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL OCT INDEX 70.5

MNI: BELGIUM OCT BNB BUSINESS SURVEY -12.8

EUROPEAN FISCAL: DE 2025 Budget Gap Grows; Political Risk Is Rising

CANADA: Politics Week: Trudeau Facing More Internal Dissent And Departures

CANADA: Politics Week: Trudeau Faces More Pressure To Resign

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

US TSYS: Short End Resisting Sell-Off After Dovish ECB Comments Late Tuesday

US TSYS
USGlobalBulletMarketsFixed Income BulletsRegionNorth America
  • Treasuries continue to see-saw lower, paring losses at the moment after futures slipped to late July levels overnight. The Dec'24 10Y Treasury futures contract trades 111-07.5 last (-3.5) vs. 111-03.5 low, round number technical support of 111-00 is also the July 22 low.
  • Trading desks continue to cite increased odds of a Trump election win (underpinning inflation concerns) for the pressure in rates. However, dovish comments from ECB governing council member Villeroy late Tuesday has stemmed a rise in short end yields.
  • If inflation is "sustainably at 2%" next year, and with still a sluggish growth outlook in Europe, there won’t be any reasons for our monetary policy to remain restrictive, and for our rates to be above the neutral rate of interest", Villeroy said in New York.
  • Short end rates bounced off lows late Tuesday, helping rekindle projected US rate cuts that are holding steady this morning: Nov'24 cumulative -23.0bp, Dec'24 -41.1bp, Jan'25 -58.6bp.
  • Incoming data includes MBA Mortgage Applications at 0700ET, followed by Existing Home Sales at 1000ET and the Federal Reserve Beige Book release at 1400ET. Treasury supply sees $13B 20Y Bond auction re-open at 1300ET.
  • Scheduled Fed speakers: Philly Fed Bowman making opening remarks at a fintech conference 0900ET, Richmond Fed Barkin community college conference at 1200ET.
206 words

To read the full story

Close

Why MNI

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.
  • Treasuries continue to see-saw lower, paring losses at the moment after futures slipped to late July levels overnight. The Dec'24 10Y Treasury futures contract trades 111-07.5 last (-3.5) vs. 111-03.5 low, round number technical support of 111-00 is also the July 22 low.
  • Trading desks continue to cite increased odds of a Trump election win (underpinning inflation concerns) for the pressure in rates. However, dovish comments from ECB governing council member Villeroy late Tuesday has stemmed a rise in short end yields.
  • If inflation is "sustainably at 2%" next year, and with still a sluggish growth outlook in Europe, there won’t be any reasons for our monetary policy to remain restrictive, and for our rates to be above the neutral rate of interest", Villeroy said in New York.
  • Short end rates bounced off lows late Tuesday, helping rekindle projected US rate cuts that are holding steady this morning: Nov'24 cumulative -23.0bp, Dec'24 -41.1bp, Jan'25 -58.6bp.
  • Incoming data includes MBA Mortgage Applications at 0700ET, followed by Existing Home Sales at 1000ET and the Federal Reserve Beige Book release at 1400ET. Treasury supply sees $13B 20Y Bond auction re-open at 1300ET.
  • Scheduled Fed speakers: Philly Fed Bowman making opening remarks at a fintech conference 0900ET, Richmond Fed Barkin community college conference at 1200ET.