dinosaurs and bonds (and bond BUYERS buyin' THE pivot)
thebondbeat.substack.com
Good morning. While YOU Slept Treasuries have been led lower by intermediates overnight with the UK/EU markets following along amid locally 'overbought' conditions here and historically elevated tactical longs (see 2nd bullet above). DXY is little changed (see attachments) while front WTI futures are higher (+1.7%). Asian stocks were generally higher, EU and UK share markets are all modestly higher while ES futures are showing -0.2% here at 6:45am. Our overnight US rates flows saw a heavy trade in Treasuries after Tokyo CPI surprised on the upside, pressuring long-end JGB's. We saw better net selling in intermediates and the long-end with the curve bear steepening. The London session was a bit subdued but fast$ was a pretty consistent seller of 5's and 7's this morning. As the desk noted today, real$ has been buying on the real rate story while HF's have been selling on the valuation story. Hmmm... We discuss this kind of tension below.
dinosaurs and bonds (and bond BUYERS buyin' THE pivot)
dinosaurs and bonds (and bond BUYERS buyin…
dinosaurs and bonds (and bond BUYERS buyin' THE pivot)
Good morning. While YOU Slept Treasuries have been led lower by intermediates overnight with the UK/EU markets following along amid locally 'overbought' conditions here and historically elevated tactical longs (see 2nd bullet above). DXY is little changed (see attachments) while front WTI futures are higher (+1.7%). Asian stocks were generally higher, EU and UK share markets are all modestly higher while ES futures are showing -0.2% here at 6:45am. Our overnight US rates flows saw a heavy trade in Treasuries after Tokyo CPI surprised on the upside, pressuring long-end JGB's. We saw better net selling in intermediates and the long-end with the curve bear steepening. The London session was a bit subdued but fast$ was a pretty consistent seller of 5's and 7's this morning. As the desk noted today, real$ has been buying on the real rate story while HF's have been selling on the valuation story. Hmmm... We discuss this kind of tension below.