MNI: PBOC Net Drains CNY279.8 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Lower At 7.1894 Thurs; -1.38% Y/Y

MNI BRIEF: Bank of Korea Cuts Policy Rate to 3.00%: Press

MNI: BANK OF KOREA CUTS RATE TO 3.00%: PRESS

MNI BRIEF: Hungarian Banks Strong, But Risks Remain - NBH

MNI China Daily Summary: Wednesday, November 27

US EIA:NAT GAS STORAGE -2 BCF TO 3,967 BCF NOV 22 WK

EZ/UK Bond Supply Calendar: Italy Auction, Finland ORI Thurs

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

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

US TSYS: Tsys Futures Edge Lower, Focus On CPI Later

US TSYS
USGlobalBulletMarketsFixed Income BulletsRegionNorth America
  • Tsys futures are off session highs, and now trade slightly lower for the session. TU is -00⅝ at 102-18+ vs the overnight lows of 102-17⅝, TY is trading -01 at 109-12+ vs overnight lows of 109-10.
  • 10yr Dec'24 futures remain in a bearish trend with last week’s move lower reinforces the downtrend and the contract is trading closer to its recent lows. A resumption of the bear leg would open 109-05 next, the 76.4% retracement of the Apr - Sep bull cycle (cont). The 109-00 handle remains exposed too. Initial firm resistance is seen at 111-29+, the 20-day EMA.
  • Overnight the selloff led to a sharp tightening of SOFR 10yr swap spreads, which dropped around 3bps, marking the largest one-day tightening since March 2023. The spreads fell to -48bps after peaking at -46.8bps earlier in the session, the move follows a period of spread widening after the US election, reflecting investor reactions to potential deregulation.
  • The cash tsys yields are slightly higher again today following overnight bear-steepening move where yields closed 8-13bps higher. The 2yr is 4.342%, while the 10yr is 4.429% only 5bps off the highs made on Nov 6. The 2s10s is -0.420 at 7.899, while ovenright the 2s7s30s fly cheapened 8bps.
  • Projected rate cuts into early 2025 compared to early Tuesday levels (*): Dec'24 cumulative -15.5bp (-17.2bp), Jan'25 -23.0bp (-25.2bp), Mar'25 -36.0bp (-38.2bp), May'25 -41.8bp (-44.3bp).
  • Later today we have MBZ Mortgage Applications, followed by CPI.
234 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.
  • Tsys futures are off session highs, and now trade slightly lower for the session. TU is -00⅝ at 102-18+ vs the overnight lows of 102-17⅝, TY is trading -01 at 109-12+ vs overnight lows of 109-10.
  • 10yr Dec'24 futures remain in a bearish trend with last week’s move lower reinforces the downtrend and the contract is trading closer to its recent lows. A resumption of the bear leg would open 109-05 next, the 76.4% retracement of the Apr - Sep bull cycle (cont). The 109-00 handle remains exposed too. Initial firm resistance is seen at 111-29+, the 20-day EMA.
  • Overnight the selloff led to a sharp tightening of SOFR 10yr swap spreads, which dropped around 3bps, marking the largest one-day tightening since March 2023. The spreads fell to -48bps after peaking at -46.8bps earlier in the session, the move follows a period of spread widening after the US election, reflecting investor reactions to potential deregulation.
  • The cash tsys yields are slightly higher again today following overnight bear-steepening move where yields closed 8-13bps higher. The 2yr is 4.342%, while the 10yr is 4.429% only 5bps off the highs made on Nov 6. The 2s10s is -0.420 at 7.899, while ovenright the 2s7s30s fly cheapened 8bps.
  • Projected rate cuts into early 2025 compared to early Tuesday levels (*): Dec'24 cumulative -15.5bp (-17.2bp), Jan'25 -23.0bp (-25.2bp), Mar'25 -36.0bp (-38.2bp), May'25 -41.8bp (-44.3bp).
  • Later today we have MBZ Mortgage Applications, followed by CPI.