USDCAD TECHS: Bulls Take Advantage of Weak Jobs Data
Oct-09 15:19
* RES 4: 1.4739 Multiyear high - 03 Feb '25 * RES 3: 1.4415 High 01 Apr '25 * RES 2: 1.4328 1.764 pr...
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US TSYS: Markets Disappointed By Long-end Buyback Announcement
Sep-09 15:18
- The market reaction to tomorrow’s 10-20Y liquidity support buyback announcement is one of disappointment. The 2s10s curve has steepened ~3bps to ~42.5bps, with outright 10-year yields up to a fresh session high of 4.85%.10- and 30-year swap spreads have also narrowed to session lows, though remain comfortably above pre-August 19 announcement levels.
- The $6bln announced by Treasury (up from $2bln at the August refunding and above the $4bln minimum set out last month) was broadly in the range of some expectations we had seen, but still hasn’t been enough to appease markets amid continued pressure in global rates markets.
- Treasury doesn’t look to have provided any further materials such as an updated buyback schedule, suggesting flexibility will be retained for the size of future long-end liquidity support operations. The next longer-term operation, for 20-30Ys, is scheduled for September 24th (announcement Sept 23rd).
- Results for the 10-20Y buyback operation will be released at 1400ET tomorrow. Focus will be on whether Treasury buys back the full $6bln amount and the magnitude of total offers it receives.
US TSYS: Post-Buyback Update, Fresh Cycle Lows, Yield Rises to Oct '23 Highs
Sep-09 15:16
- Treasury futures continue to extend lows after Tsy announces buy-back up to $6B longer dated debt.
- TYZ6 taps 107-00 low, yield +.0605 at 4.8487 (highest since late October 2023). The move down maintains the price sequence of lower lows and lower highs and note that moving average studies are in a bear-mode position, highlighting a dominant downtrend. Scope is seen for an extension towards 107-02+ next, a Fibonacci projection.
- Cross-asset update, US$ rebound (BBDXY +.01 to 1187.36), stocks weaker (DJIA -0.78%)
FED: US TSY 17W AUCTION: NON-COMP BIDS $630 MLN FROM $72.000 BLN TOTAL
Sep-09 15:15
- US TSY 17W AUCTION: NON-COMP BIDS $630 MLN FROM $72.000 BLN TOTAL
