Bonds - USD
The UST curve is flatter and higher ahead of some Fedspeak and the looming jobs data. BNPP's new index finds short positioning at an extreme.
Haven steepening pulled 10y USTs down to 1.415% before coming back. Ahead, banks look at how the the drivers for SOFR swap spreads differ vs LIBOR.
The past week saw the holiday as well as rocky conditions. Only $4.5bn priced. $35bn is forecast this week, but it is off to a tentative start.
An update of recent USD new issuance.
The UST curve is bear-steepening after ECB comments hit the Bund. EDs are down again. Banks mull the outlook for spreads and the new Fed.
A hefty $56.5bn priced last week, over $20bn more than expected. With MTD already over $100bn, surveys expect a slowdown for the holiday week.
While Corona and inflation fears continue to slosh around, a low-conviction sell-off in USTs this morning is probably more to do with supply.
TIPS are high for a reason reckon banks as Treasury preps a 10y reopening. Elsewhere, another Formosa lands this week.
Treasuries remain a touch steeper after the housing data. Fedwatchers discuss Biden's pick. Another Formosa emerges. Hedge funds' fortunes diverge.
$25bn priced in IG last week, and volumes are expected to pick up with $35bn anticipated. Today sees a strong start.