US Dollar (USD)
BEs quickly sulk lower into the month-end close as a meager index extension, rallying nominals and a rudderless risk tone lent little support.
USTs are better bid into month-end amid an increasingly souring risk-tone. Powell defends Fed’s bazooka. JPM’s mREIT update.
USTs are in the middle of their narrow May range ahead of Trump's keenly awaited China plans. Barclays looks at alternatives to SOFR.
BEs ignored the shifting risk tone today, forging higher as the backdrop deteriorated. Attention now shift to month-end flows tomorrow.
The curve has thus far bucked ME buying prognostications and has continued steeper. Spreads and outright rates see minor bumps, but are mostly steady.
Berm vol sees some activity in 5y NC1 amid a recent slowdown of callables in that sector. ULC dips. BofA examines the steep VIX drop.
Both USTs and spreads are narrowly mixed while the UST curve has steepened more. IG supply hits the tape. DB sees increased pension duration demand.
After a quiet start to the week, both sides of the Atlantic are seeing strong issuance, with USD supply from non-domestic issuers booming.
Treasuries are little-changed as Dow futures stay in the green and 7y supply looms.
The long end reversed lower late in the day. The 5y auction tailed more than 1bp, adding to the pressure in the belly. Swap spreads narrowed