('FI lethargy' and downside protection noted) while WE slept; 'Earl now DOWN on year; rent'flation 'plunging'
thebondbeat.substack.com
Good morning … … here is a snapshot OF USTs as of 705a: … HERE is what another shop says be behind the price action overnight… … WHILE YOU SLEPT Treasuries are mildly flatter on some receiving in 10y+ space seen overnight, though futures volumes are barely scratching 60% of the 5-day average. Positioning continues to show signs of deleveraging, FVH3 contract OI -74k / TYH3 -33k in last 3 session on long & short positions getting washed out in the current range consolidation. Interestingly, last night saw the first official reports out of the Chinese Politburo meeting, which brought indications of looser covid restrictions (see links above). APAC risk-markets traded off the earlier lows, but the lack of a definitive monetary easing bias appeared a disappointment (several articles pointed to “targeted and forceful” monetary policy support). Either way, DAX (-0.4%) and S&P futures (-0.4%) remain on poor technical footing, while 30y yields continue to waffle just above key resistance (3.488%). Flow-wise, there was little to point to in the FI lethargy overnight, though some downside TY protection was noted in chats (111/110 put spreads for 10k).
('FI lethargy' and downside protection noted) while WE slept; 'Earl now DOWN on year; rent'flation 'plunging'
('FI lethargy' and downside protection noted…
('FI lethargy' and downside protection noted) while WE slept; 'Earl now DOWN on year; rent'flation 'plunging'
Good morning … … here is a snapshot OF USTs as of 705a: … HERE is what another shop says be behind the price action overnight… … WHILE YOU SLEPT Treasuries are mildly flatter on some receiving in 10y+ space seen overnight, though futures volumes are barely scratching 60% of the 5-day average. Positioning continues to show signs of deleveraging, FVH3 contract OI -74k / TYH3 -33k in last 3 session on long & short positions getting washed out in the current range consolidation. Interestingly, last night saw the first official reports out of the Chinese Politburo meeting, which brought indications of looser covid restrictions (see links above). APAC risk-markets traded off the earlier lows, but the lack of a definitive monetary easing bias appeared a disappointment (several articles pointed to “targeted and forceful” monetary policy support). Either way, DAX (-0.4%) and S&P futures (-0.4%) remain on poor technical footing, while 30y yields continue to waffle just above key resistance (3.488%). Flow-wise, there was little to point to in the FI lethargy overnight, though some downside TY protection was noted in chats (111/110 put spreads for 10k).