Slightly lower in quiet trading as equities bounce modestly, underperform Bunds

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

OVERNIGHT TREASURIES

•Slightly lower in quiet trading as equities bounce modestly, underperform Bunds
•Customer flows mixed and sporadic; Asian accounts on both sides of mkt in belly, European accounts sell 10s, Asia sells long-end
•Good volume amid dip; 198k 10-year futures trade by 06:21 EST
•September 10s trade 134-31/134-21 overnight

MARKET BIAS

•The tactical bias is supportive, looking for spots to trade both sides of the market anticipating a relatively quiet pre-weekend session.
•Look for a range of 1.46% to 1.39% in 10s.
•The strategic bias is flat selling out a 50% position in 7s from 0.935% at 0.928% and covering a short in the bond from 2.48% at 2.488% for a combined 1.5 bps profit.
• The curve bias is flat after legging out of a 5s/7s steepener from 37 bps at 36 bps into the 7-year auction (selling 5s at the auction deadline and buying the 7s at auction) for a 1 bps loss.

TECHNICAL OVERVIEW

DATA

•08:30 GDP (aQ2) (mkt +1.5% q/q AR, prev +1.9% q/q AR)
•08:30 — Core PCE Deflator (aQ2) (mkt +1.9% q/q AR, prev +2.3% q/q AR)
•08:30 — Final Sales (aQ2) (mkt +1.4% q/q AR, prev +1.8% q/q AR)
•09:55 Michigan Sentiment (fJul) (mkt 72.0, prev 72.0)

EVENTS

•11:00 Fed outright Treasury coupon sale (05/15/2015 – 09/30/2015) (e: $7.00 – $8.00 bln)

ISSUANCE

•No Treasury issuance activities schedule

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Your email address will not be published.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 | BondMoves.com
CyberChimps