Swaps - USD
USTs rallied into double digits, with the 10y note yield hitting 3.40%. Fast money was seen fading the rally, sources highlight, and spreads widened.
USTs continue to rally with Putin headlines adding an FTQ aspect to today’s bid. BofA cautions that FCI easing means Fed policy is too loose.
Treasuries are rallying as risk off weakens stock futures again following China's rushed shift in Covid policy. Ahead, a bond bull returns for 2023.
USTs are narrowly mixed while equities are lower again as the impact of recent sobering data persists. DB sees USTs in the black in 2023.
USTs dove lower, led by the front end and belly. The swap spread curve steepened versus the UST bear flattening. Barclays likes 10y spread wideners.
Last week saw $22.15bn price in IG (ex-SSA), slightly above expectations. The supply was front loaded and December finally sees the first supply today
The short-lived response to NFP and wages data on Friday suggested a market fatigue that this morning has done little to dispel.
This morning’s strong NFP release initially rattled USTs and equities but both are now well-off earlier lows. SG sees UST rally as premature.
The UST curve is steeper and spreads are wider led by the long end ahead of the jobs data. Banks gauge the merits of USD-EUR real rate tighteners.
The UST rally roared on, despite incredulity from several corners and thus likely feeding the move. NFP tomorrow could provide a does of reality.