Reply To: Traders Market Weekly: Market Dysfunction with Inflation and Supply Fragilities


U.S. Treasuries are on track for a lower start with shorter tenors expected to give back their gains from yesterday. Treasury futures faced some selling pressure last evening, reaching lows around the midpoint of the Asian session. The trading range narrowed as the night went on with Treasuries remaining just above their worst levels of the night.

The overnight session saw a limited set of economic data while equity markets in Asia had a mixed showing, followed by gains in Europe. The Bank of Japan will continue offering to buy unlimited amounts of 10-yr JGBs until Tuesday as the country’s 10-yr yield remains near 0.25%. Eurozone’s yr/yr inflation rate was revised down to 7.4% in the final March reading from 7.5% in the preliminary report.

2-yr: +5 bps to 2.62%
3-yr: +5 bps to 2.83%
5-yr: +4 bps to 2.90%
10-yr: +2 bps to 2.86%
30-yr: +2 bps to 2.90%