Bonds - USD
Fast money selling after a week of steady gains failed to stop ASWs push higher today. Traders look at the NY Fed's reverse repo plans.
As traders in Europe struggle with spluttering feeds USTs are bull-flattening despite an OK performance by risky assets.
Swap spreads are tighter as deals arrive and the end of blackout comes nearer. Banks look for a faster, later Fed response.
Only $9.5bn priced in IG last week, or less than half of what was expected. 3 IG issuers have announced thus far for today's business.
Quarter end buying has extended into today with the curve bull-flattening. However, bears lurk and continue to expect 2% 10y yields and elevated vol.
IG had seen $42bn price last week, but with Nomura pulling and Jackson Financial pricing then delaying the total dwindles down to $37bn.
The Treasury curve is flatter in 2s/10s before 2y supply and testimony by Powell and Yellen. Strategists estimate the potential for PF rebalancing.
$30.75bn priced last week slightly under expectations. March has already exceeded, however. Oracle jumbo 6-part leads today's business.