MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1843 Weds; -1.22% Y/Y

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

EZ/UK Bond Supply Calendar: 4.25% Jul-34 Gilt Due Wednesday

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

MNI: JAPAN NOV CORP GOODS PRICE INDEX +3.7% Y/Y; OCT REV +3.6%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

US TSYS: Tsys Futures Off Earlier Highs, 10yr Holds Above 4% Ahead Of Auction

US TSYS
USGlobalBulletMarketsFixed Income BulletsRegionNorth America
  • Tsys futures are off earlier highs and now trade at session lows and back at NY closing levels, the moves look to have coincided with a bounce in equities following "CHINA MINISTRY OF FINANCE TO BRIEF ON FISCAL POLICY SATURDAY" - BBG. TU is trading +01⅛ at 103-14⅞, while TY is + 01+ at 112-16+.
  • Volumes are roughly in line with recent averages, while earlier we did see a 2s10s steepener Blocked, DV01 $385k.
  • Tsys curves have tbear-steepened, with yields +1.5bps to -0.5bps. The 2yr is -0.4bps at 3.955%, while the 10yr is +1.2bps at 4.024% and underperforms ahead of the 10yr auction later.
  • The Fed's Jefferson spoke earlier, his comments were largely in line with recent Fed speaker. He explained the Fed's recent 50bp rate cut as a move to support the labor market while inflation continues to ease toward the 2% target. He noted that economic growth remains solid, inflation is now at 2.2%, and the labor market has cooled slightly, with unemployment rising to 4.1%. Jefferson emphasized a data-driven approach to future rate decisions.
  • Traders are shifting their bets in the Tsys market, moving away from bullish positions as they expect a slower pace of Fed rate cuts following the strong September jobs report, long positions linked to the SOFR have sharply declined while new short positions are emerging ahead of key inflation data. The market is now pricing in 22bps of cuts at the November meeting, and 49bps by December, reflecting more cautious expectations for Fed policy easing.
  • Focus will turn to trhe 10y Auction and Sep FOMC minutes due out later today.
262 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 earlier highs and now trade at session lows and back at NY closing levels, the moves look to have coincided with a bounce in equities following "CHINA MINISTRY OF FINANCE TO BRIEF ON FISCAL POLICY SATURDAY" - BBG. TU is trading +01⅛ at 103-14⅞, while TY is + 01+ at 112-16+.
  • Volumes are roughly in line with recent averages, while earlier we did see a 2s10s steepener Blocked, DV01 $385k.
  • Tsys curves have tbear-steepened, with yields +1.5bps to -0.5bps. The 2yr is -0.4bps at 3.955%, while the 10yr is +1.2bps at 4.024% and underperforms ahead of the 10yr auction later.
  • The Fed's Jefferson spoke earlier, his comments were largely in line with recent Fed speaker. He explained the Fed's recent 50bp rate cut as a move to support the labor market while inflation continues to ease toward the 2% target. He noted that economic growth remains solid, inflation is now at 2.2%, and the labor market has cooled slightly, with unemployment rising to 4.1%. Jefferson emphasized a data-driven approach to future rate decisions.
  • Traders are shifting their bets in the Tsys market, moving away from bullish positions as they expect a slower pace of Fed rate cuts following the strong September jobs report, long positions linked to the SOFR have sharply declined while new short positions are emerging ahead of key inflation data. The market is now pricing in 22bps of cuts at the November meeting, and 49bps by December, reflecting more cautious expectations for Fed policy easing.
  • Focus will turn to trhe 10y Auction and Sep FOMC minutes due out later today.