Modest bid out curve in quiet overnight trading

BondMoves would like to thank IFR MARKETS for allowing us to reprint the following information. IFR MARKETS can be contacted by visiting their website All copyrights are retained by IFR MARKETS.



•Modest bid out curve in quiet overnight trading
•Moderate volume, 151k 10-year futures trade by 06:33 EST
•USTs underperforming EGBs by 0.3bp in the 10yr maturity compared to the previous London close.
•10s trade in a range of 2.044% and 2.025% overnight.


•The tactical bias is neutral/defensive, looking for a short opportunity ahead of the 30-year supply.
•Look for a 2.08% to 2.00% range in 10s.
•The strategic bias is flat after covering a 50% position in WI 10s from 2.02% at 2.043% at auction for a 2.3 bps profit. We anticipate looking for an auction set-up short in 30s ahead of its auction.
•The curve bias is flat after exiting a 7s/30s flattener from 172.8 bps at 177.8 bps for a 5 bps loss.




•08:30 Initial Claims (wk Apr 7) (mkt 355k, prev 357k)
•08:30 Continuing Claims (wk Mar 31) (mkt 3.340 mln, prev 3.338 mln)
•08:30 International Trade (Feb) (mkt -$52.0 bln, prev -$52.6 bln)
•08:30 PPI (Mar) (mkt +0.3% m/m, +3.1% y/y; prev +0.4% m/m, +3.3% y/y)
•08:30 Core PPI (Mar) (mkt +0.2% m/m, +2.8% y/y; prev +0.2 % m/m, +3.0% y/y)


•09:45 FRB Atlanta’s Lockhart (voter, moderate) to moderate panel on U.S.-Mexico ties
•10:15 Fed outright Treasury coupon purchase (05/15/2020 – 02/15/2022) (e: $4.25 – 5.00 bln)
•12:30 FRB Philadelphia’s Plosser (non-voter, hawk) on the economic outlook; Washington DC
•13:00 FRB Minneapolis’s Kocherlakota (non-voter, hawk) on the economic outlook; White Bear Lake, MN
•15:30 Fed Governor Raskin (voter, dove) on the economy; Los Angeles, CA


•11:00 Treasury announces 3- and 6-month bills (e: $31/29 bln)
•11:00 Treasury announces 5-year TIPS (e: $16 bln)
•13:00 Treasury auctions $13 bln 30-year bonds

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

© Bond Market News Built for Bond Trading |