Beyond the Headlines

US Treasuries are unchanged overnight as a sudden drop in equities erased the initial move higher in yields. Virus cases continue to grow in developed countries such as Brazil and India which has caused the decline to center around the travel industry. Looking ahead,...

Treasuries are little changed following a relatively quiet news cycle over the weekend, and U.S. equity futures are slightly lower amid general dollar weakness. The CDC reported yesterday that half of all American adults (130 million) have received at least one...

Yesterday’s Treasury market rally continued in the overnight session, and market participants still aren’t very sure of what sparked yesterday’s curve flattening, particularly considering the strong economic data that was released. The most common explanation from...

Better demand from Asian investors overnight is pushing Treasury prices higher across the curve despite a positive tone in risk markets this morning. U.S. tensions with Russia is likely one contributor to the rally in Treasuries, as the White House just announced...

Treasury yields are slightly higher in the belly and long-end of the curve this morning. Equity futures are up a little as the markets digest corporate earnings. The MBA Mortgage Applications Index fell 3.7% last week after falling 5.1% the week prior. Purchases were...

News that the FDA is pausing distribution of the J&J vaccine is contributing to slightly lower Treasury yields this morning despite an upside surprise in the March CPI report. U.S. equity futures are mixed ahead of the open (Dow -0.24%, NASDAQ +0.29%). Headline...

A mild risk-off tone in equity markets is not enough to push Treasury yields lower this morning, with new supply (3yr and 10yr auctions today) outweighing other concerns for now. Covid concerns abroad are weighing somewhat on sentiment to start the week, and Fed Chair...

Higher than expected inflation readings from China contributed to lower Treasury yields overnight, and U.S. equity futures are little changed ahead of the open. The New York Fed announced that it will be adjusting its Treasury purchases going forward to make them more...

Yesterday’s dovish FOMC minutes are contributing to lower and flatter Treasury yields this morning following a relatively quiet overnight session. The ECB added to the dovish monetary tone at their monthly policy meeting this morning, saying “the recent tightening of...

US Treasury prices were unchanged overnight as markets remained in a holding pattern ahead of the FOMC minutes release. In the March 17th meeting, revisions to the dot plot revealed a marginally more hawkish committee with three members projecting front-end rates off...

Rates are slightly lower this morning as the equity rally stalled. Block trades from Credit Suisse associated with Archegos Capital Management led stock prices lower. The equity markets had been on a tear for the past three days and the S&P 500 breached 4,000 for...

Rates are unchanged this morning following a quiet overnight session. Futures on the Dow and S&P are pointing to a higher open while oil prices fell as OPEC+ announced a decision to increase production. The pace of vaccinations continues to increase with an...

Today’s job report came in better than expected. The median forecast called for an increase of 660,000 jobs in March, the actual increase came in at 916,000, the largest uptick since August of last year. The unemployment rate fell to 6% and the participation rate...

Treasury yields are lower and flatter to begin the first trading session of Q2, and today will be the last full trading day of the week given the Easter holiday schedule (early close tomorrow at 12pm EDT). President Biden announced a $2.25 trillion infrastructure plan...

Treasuries in the belly and long-end of the curve are slightly higher this morning ahead of President Biden’s speech later today in Pittsburgh where he will announce his infrastructure plan. The plan is expected to total $2.25 trillion and will be paid through...

Intermediate and long-end Treasury yields are another 3-5 basis points higher on reports that Biden’s infrastructure plan may cost as much as $4 trillion. President Biden is expected to announce this massive plan tomorrow, which is reported to include $3.5 trillion of...

A forced hedge fund liquidation is weighing on risk markets today and sending Treasury yields lower and flatter this morning. Nomura and Credit Suisse both say they face “significant” losses from their prime brokerage businesses after the failure of Archegos Capital...

A modest improvement in risk sentiment emerged overnight and is contributing to higher Treasury yields this morning.  The Fed said yesterday that temporary limits placed on bank dividends and stock buybacks last summer will end for most banks after June 30. “The...

Treasury yields are modestly lower across the curve ahead of today’s $62 billion 7-year auction. Last month’s auction was historically bad and sent benchmark yields 10 bps higher in a flash immediately thereafter. Initial jobless claims fell more than expected last...

After initially falling overnight in the Asian trading session, Treasury yields have reversed higher following the release of better than expected PMI data from Europe. The preliminary Eurozone composite PMI reading for March, which includes both manufacturing and...