Swaps - USD
Weak ISM data has kept the UST ally alive with yields cascading lower yet again today. BofA sees front-end dislocations dissipating.
With new issuance supply and market liquidity drying up faster than the Aral Sea, volatility remains the name of the game. Will ISM add to it?
Weak consumer spending data has sparked recession fears again with USTs bid amid FTQ demand. Citi sees rich SOFR remaining for months ahead.
USTs rallied further this afternoon as the month end buying appeared to have an early start. Swap spreads widened in a low volume trade.
USTs have shifted back into rally mode against various crosscurrents. Barclays maintains 2s30s SOFR spread curve wideners.
USTs and Bunds have pared early gains after hawkish central bank comments. Meanwhile banks suggest fading the front end's dislocation.
The $40bn 7y tailed 2bps, but equities dropped in lower and the net effect for USTs was a slight bull flattening move. Swap spreads chopped around.
Risk sentiment has steadily soured today, helping to lift USTs off their earlier lows. SocGen’s rate view amid unchartered territory.
Bunds led the slide in global fixed income again after hawkish ECB speak. Ahead USTs face 7y supply and discuss the reasons for SOFR's softness.
The large 4bp tail of the 5y hit the belly of the UST curve and sent spreads lower amid light volumes. The 2y tailed slightly. IG reopens with $4.85bn