US Dollar (USD)
UST yields are lower while equities have proved resilient. Front end swap spreads have stabilized. Banks preview the minutes.
Treasuries are bull-flattening and the spread curve is steeper as traders mull the prospects for a US-China trade agreement given the turmoil in HK.
Narrowing pressures in the front end of the spread curve gathered further momentum into the afternoon, with the 2y spread down 1.75bps.
BEs compressed modestly against an largely inflation-unfriendly backdrop. Attention now turns to the more pertinent events for the asset class.
Amid the underlying flattening, the left side again outperformed while the right side and longer expiries followed higher, albeit modestly.
As the situation of non-fixing ICE Swap Rate fixings has persisted, IBA published feedback today that overwhelming calls to expand the data set.
USTs are bull-flattening as trade skeptics lurk while equities ride high. Front end spreads continue narrowing on little volume.
Zero-coupon callables shifted back to non-Formosa supply this past week, as the majority of new notes were non-Formosa. CMS-linked notes were active.
Swap spreads are mixed after Monday's tightening. As FRA/OIS continues to tighten, strategists at JPM look at potential drivers for the move.
Swap spreads narrowed, led by the front end as supply related flows and tighter FRA/OIS helped to pressure spreads. Barclays looks at the ISDA consult