Swaps - USD
USTs are steeper on news that 20y supply is in the wings earlier than expected. BofA sees a postponement in LIBOR transmission.
The big news in USTs is that the Fed is to take a step back to the future by selling 20y USTs for the first time since 1986. Traders are positive.
Swaps drifted in lower today, but sources see room for further gains ahead, with the Fed wining the repo war. Sources discuss curve views. SOFR talk.
Risk-on persists with USTs finally under pressure amid range bound trading. Spreads are tighter ahead of IG deals but Barclays favors 30y wideners.
Swap spreads are tighter as FIG issuers arrive. MS FICC surges. Brevan sees assets rise and trims its long. Formosa drivers.
It has been a classic case of missing the boat on the dip for would be spread wideners. Today offered no reprieve as FIG supply had little impact
USTs remain in bull-flattening mode ahead of today’s Phase-One deal inking. BofA expects a January increase in IOER. Spreads lift.
Gilts led global fixed income upwards today. Barclays looks at SOFR. GS and BofA report more strong fourth quarter FICC numbers.
The NY Fed announced a new month of repo operations this afternoon, with term sizes eventually dropping down to $30bn from $35bn. Spreads lift.
Bond market bulls are back in control at levels some find uncompelling. JPM is bearish rates going forward. Citi FICC earnings rises +49%.