Swaps - USD
With corona thriving, Halloween looming, and Trump-Biden just days away, all that global markets can do is just try to stay calm. And so far they are.
USTs bear steepened sharply, with the equity reversal and weak 7y adding momentum. Underlying the move, sources see liquidity withdrawing.
USTs are bear steepening as risk sentiment tentatively mends today. BNP Paribas sees a respite in UST supply at the November refunding.
USTs were impervious to the weaker equity tone today and sources fail to see a solid driver. The $55bn 5y came through the bid side. TY vol rises.
Equities are sharply lower as Covid-19 alarm bells are ringing louder today but the FTQ bid in USTs has been absent. JPM looks at UST supply/demand.
Plunging stock indices in Europe and US have so far failed to lift Treasuries. In the news, DB confirms a big, ECB-approved change in its VaR model.
UST remain in bull flattening mode as equities are reluctant to retrace yesterday’s heady losses. Citigroup sees UST yields anchored.
Risk assets are paring initial gains in a wary, partial recovery from yesterday's weakness. Banks report strength in credit rather than rates.
The risk-off move dented equities and yields. Investors still want LIBOR-like features of a term rate and a credit-sensitive rate, Barclays finds.
Last week saw $17.75bn price, coming just above estimates. October still needs around $15bn to reach the MTD expectation. Weaker tone to start.