October 18, 2021 Headlines

October 18, 2021 Headlines The October bear flattening trend for the Treasury curve ratcheted up overnight on fresh hawkish comments from ECB and BoE leaders. The 2-year note yield is at 0.44%, up from 0.22% just prior to the September 22 FOMC meeting, and the 5-year...

October 15, 2021 Headlines

October 15, 2021 Headlines This week’s curve flattening trend in the Treasury market reversed somewhat overnight amid improved risk sentiment and anticipation of next week’s new supply. Long-end yields are up 3-4 basis points (bps) on the morning so far but still down...

October 14, 2021 Headlines

October 14, 2021 Headlines The belly of the curve is rallying this morning with 3yr to 5yr Treasuries 2 bps lower. Equity futures are up on the back of a better-than-expected jobless claims number and encouraging PPI numbers. 293,000 individuals filed for unemployment...

October 13, 2021 Headlines

October 13, 2021 Headlines Headline CPI growth was just above expectations in September at +0.4% m/m, boosted by higher energy and food costs. Excluding those categories, growth in the core index was in line with expectations at +0.2% m/m. On a year-over-year basis,...

October 12, 2021 Headlines

October 12, 2021 Headlines The Treasury curve is twisting this morning, with short and intermediate yields higher and long-end yields lower, and equity index futures are pointing to a slightly higher open for U.S. stocks. The House is scheduled to vote today on a...

October 8, 2021 Headlines

October 8, 2021 Headlines Treasury yields were higher overnight on firmer oil prices and pro-risk sentiment in Asia following the Senate debt ceiling agreement, but yields are now lower on the day in the immediate aftermath of a disappointing September jobs report....

October 7, 2021 Headlines

October 7, 2021 Headlines Risk markets have traded better ever since reports surfaced yesterday afternoon that Republicans had offered a deal to Democrat leaders that would temporarily lift the debt ceiling. European stocks have been further boosted by declining...

October 6, 2021 Headlines

October 6, 2021 Headlines Inflation headlines in Europe roiled global equity markets overnight, led by a nearly 2% decline in the Euro Stoxx 50. Treasuries extended yesterday’s sell-off in the early overnight session, but prices have recovered somewhat amid the...

October 5, 2021 Headlines

October 5, 2021 Headlines Risk markets were modestly better overnight, and long-end Treasury yields are leaking higher amid higher oil and other commodity prices. Regarding rising commodity prices, the Bloomberg Commodity Spot Index, which tracks spot prices on broad...

October 4, 2021 Headlines

October 4, 2021 Headlines Treasuries are selling off this morning with the 10-year up roughly 3 bps, while equity futures are lower as issues surrounding supply chains threaten to put a damper on growth. Additionally, these supply worries are spurring concerns over...

October 1, 2021 Headlines

October 1, 2021 Headlines The Senate is poised to pass a continuing resolution this morning that would avoid a government shutdown before tonight’s deadline. S&P 500 futures are up 0.33% (8:25am ET) and Treasury yields are 1-2 basis points higher across the curve....

September 30, 2021 Headlines

September 30, 2021 Headlines The Senate is poised to pass a continuing resolution this morning that would avoid a government shutdown before tonight’s deadline. S&P 500 futures are up 0.33% (8:25am ET) and Treasury yields are 1-2 basis points higher across the...

September 29, 2021 Headlines

September 29, 2021 Headlines US Treasury yields bull flattened overnight as the market attempts to price in a Federal Reserve ready to taper asset purchases, as well as renewed inflation fears tied to increased energy costs. In the political arena, October 18 is now...

September 28, 2021 Headlines

September 28, 2021 Headlines The US Treasury curve continued to bear steepen with 10-year yields up 5.5 bps to 1.54% ahead of the open. In Monday’s testimony to the Senate Banking Committee, Federal Reserve Chairman Powell alluded to the possibility of reduced asset...

September 27, 2021 Headlines

September 27, 2021 Headlines The US Treasury curve bear steepened overnight as a recent surge in oil prices renewed inflation concerns and heavy supply pressured long-end yields. Futures contracts on WTI crude are up 1.97% to a 3-year high of 75.44 a barrel as output...

September 24, 2021 Headlines

September 24, 2021 Headlines Markets continue to juggle near-term worries related to Evergrande and the Fed’s hawkish surprise on Wednesday. Regarding the former, bond holders reportedly did not receive scheduled interest payments yesterday, starting the clock on the...

September 23, 2021 Headlines

September 23, 2021 Headlines The curve is higher and steeper this morning with the belly and long-end up 5 to 6 bps while equity futures are up (Dow +0.75% and S&P +0.62%). The risk-on move is being driven by yesterday’s Fed meeting in which the central bank left...

September 22, 2021 Headlines

September 22, 2021 Headlines All eyes are on the Fed today in global financial markets. A modest risk-on tone overnight has equity futures modestly higher ahead of the open, and Treasuries are little changed. There are two areas of focus for today’s Fed meeting....

September 21, 2021 Headlines

September 21, 2021 Headlines Risk markets rebounded overnight from yesterday’s sharp sell-off. S&P 500 futures are up 0.70% an hour before the open, and Treasury yields are modestly higher and steeper. Evergrande reportedly missed interest payments due yesterday...

September 20, 2021 Headlines

September 20, 2021 Headlines A potential default this week by Chinese real estate giant Evergrande and worries of secondary contagion from the default has investors uneasy to start the week. Today’s global risk-off trade has U.S. equity index futures down 1.5%-2% and...