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EUROSTOXX50 TECHS

(Z1) Trades Through Support

BONDS

All About Evergrande

BTP TECHS

(Z1) Bearish Focus

GILT TECHS

(Z1) Sharp Slide Extends

US TSYS SUMMARY
Rates trade mostly weaker, yield curves back near Monday highs as short end levels outperform (2YY tapped new low of .0972%.
  • Little react to marginally disappointing weekly claims (-19K TO 793K), continuing claims ( -0.145M to 4.545M). Rates inched gradually lower as equities held near all-time highs in early trade (ESH1 3920.5).
  • Equities sold off around noon, no substantive driver but sources pointed to couple large sell-programs at the time followed by go-to excuse of asset allocation.
  • Tsys sell off after weak US Tsy $27B 30Y bond auction (912810SU3) draws 1.933% high yield (1.825% last month) vs. 1.924% WI; w/ 2.18 bid/cover (2.47 prior).
  • No deal-tied hedging, issuers hitting the sidelines ahead the extended US holiday weekend after $35.47B high-grade issued in first half of week. Two-way positioning, pick-up in March-June futures rolling and option-tied hedging rounding out flow so far. University of Michigan consumer confidence rounds out data for week, 80.8 exp Friday vs. 79.0 prior.
  • The 2-Yr yield is unchanged at 0.1071%, 5-Yr is up 0.8bps at 0.4578%, 10-Yr is up 3.2bps at 1.1549%, and 30-Yr is up 3.6bps at 1.9435%.
MNI Chicago Bureau | +1 312-431-0089 | bill.sokolis@marketnews.com