Reply To: Traders Market Weekly: Oil Caps, Sanctions and Services

#48389
Truman
Participant

U.S. Treasuries are on track for a modestly higher start in most tenors.

Treasury futures climbed last evening, emboldened by weakening sentiment in Asia stemming from the reimposition of lockdown measures in China. The tightening of coronavirus restrictions invited protests in several cities, including Beijing.

In Europe, there has been continued speculation that the Bank of England and the European Central Bank will shift down to 50-bp rate hikes going forward.

Treasury futures reached overnight highs shortly after 3:00 ET, followed by a pullback that erased the bulk of last night’s gains.

Yield Check:
2-yr: -2 bps to 4.46%
3-yr: UNCH at 4.23%
5-yr: UNCH at 3.87%
10-yr: -1 bp to 3.68%
30-yr: -2 bps to 3.72%