Bond Traders Weekly Outlook: Bonds Rally on Rate Cut Bets, Despite Powell Caution

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • #68212
    MoneyNeverSleeps
    Participant

    U.S. Treasuries are on track for an extension of this week’s gains after a steady rise in the overnight futures market.

    Treasury futures continued rising after yesterday’s cash close, marching steadily higher through the Asian session. The market reached highs around 1:30 ET, followed by some slight backtracking.

    The overnight news flow included the fourth consecutive policy hold from the Reserve Bank of New Zealand and reports that Japan’s Finance Ministry raised its assumed rate for debt servicing for the first time in 17 years in its budget proposal for the upcoming year. In Europe, Spain reported cooler than expected CPI for November while Germany’s recently-released CPI report for November also fit that trend.

    The U.S. session will feature the release of the second estimate of Q3 GDP (consensus 4.9%; prior 4.9%) at 8:30 ET and the Fed will release its latest Beige Book in the early afternoon. Crude oil is returning to its 200-day moving average (78.16) while the U.S. Dollar Index is up 0.1% at 102.82, rising from its lowest level since early August.

    Yield:
    2-yr: -3 bps to 4.70%
    3-yr: -5 bps to 4.42%
    5-yr: -6 bps to 4.23%
    10-yr: -6 bps to 4.28%
    30-yr: -5 bps to 4.47%

    #68117
    KnovaWave
    Participant

    U.S. Treasuries opened December with a strong rally that sent rate-sensitive two-year yields reached a five-month low at 4.56 per cent. Benchmark 10-y
    [See the full post at: Bond Traders Weekly Outlook: Bonds Rally on Rate Cut Bets, Despite Powell Caution]

Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.