Reply To: Traders Market Weekly: Bull or Bear Trap Ahead of the Fed?


Bond Market Wrap

U.S. Treasuries began the week with losses in most tenors while the 2-yr note outperformed, finishing with a modest gain. The higher start followed a busy night that saw a weak showing from equities listed in Hong Kong after China’s President Xi started his third term.

Ihe U.K., Rishi Sunak will be the next prime minister while Chancellor Hunt will reportedly announce up to GBP20 bln in tax hikes on high earners next week. Separately, the Bank of England plans to hold eight $750 mln bond sales between November 1 and December 31.

Treasuries recovered the bulk of their losses going into the afternoon, respecting a narrow range in late action, though the long bond remained behind, lifting its yield to a fresh high for the year.

The U.S. Dollar Index slipped 0.1% to 111.96.

2-yr: -3 bps to 4.48%
3-yr: UNCH at 4.52%
5-yr: +1 bp to 4.36%
10-yr: +2 bps to 4.23%
30-yr: +6 bps to 4.36%