BONDS: EGBs-GILTS CASH CLOSE: Yields Tick Lower On Fed Relief
Dec-11 17:17
EGB and Gilt yields pulled back Thursday, in the wake of the Federal Reserve decision.
- Treasuries led overnight global gains after the Fed's communications proved less hawkish than feared.
- The European short-end saw some relief in an overall steepening move across curves.
- Germany saw outright bull steepening with the short-end outperforming on the curve after recent underperformance; Gilts however outperformed Bunds in absolute terms, with outperformance in the UK belly.
- Gilts held on to early gains better than Bunds, which at one point retraced overnight gains despite little apparent macro/headline driver.
- 10Y Gilt spreads to Bunds set another fresh post-September 2024 low.
- Periphery / semi-core EGB spreads tightened, with gains led by Spain and Portugal.
- Friday's data includes UK monthly economic activity and final French/German/Spanish November inflation.
Closing Yields / 10-Yr EGB Spreads To Germany
- Germany: The 2-Yr yield is down 1.7bps at 2.16%, 5-Yr is down 1.2bps at 2.464%, 10-Yr is down 0.8bps at 2.843%, and 30-Yr is down 0.1bps at 3.452%.
- UK: The 2-Yr yield is down 1.9bps at 3.771%, 5-Yr is down 2.4bps at 3.959%, 10-Yr is down 2.2bps at 4.484%, and 30-Yr is up 0.2bps at 5.207%.
- Italian BTP spread down 1.2bps at 68.4bps / Portuguese down 1.7bps at 31.1bps
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MNI EXCLUSIVE: MNI on How Fed Will Determine When to Expand Balance Sheet Again
Nov-11 17:09
- MNI lays out how the Fed will determine when to expand its balance sheet again -- On MNI Policy MainWire now, for more details please contact sales@marketnews.com
US STOCKS: Midday Equities Roundup: Tech Shares Retreat, Weighing on Nasdaq
Nov-11 16:58
- Stocks are mixed Tuesday, the DJIA outperforming weaker in SPX eminis and Nasdaq ahead midday. Generally muted activity on the Veterans Day holiday - while AI valuation concerns hampered chip makers again. Otherwise, risk sentiment was stable ahead of Wednesday's House vote to re-open/fund the government through Jan 30.
- Currently, the DJIA trades up 295.33 points (0.62%) at 47664.09, S&P E-Mini Futures 15.75 points (-0.23%) at 6840.5 Nasdaq down 184.6 points (-0.8%) at 23343.99.
- Reversing Monday's support - technology stocks led declines in the first half: Lam Research -4.20%, Hewlett Packard Enterprise -4.08%, Vistra -3.96%, Oracle -3.89%, Dell Technologies -3.82%, Micron Technology -3.65%, Teradyne -3.44% and NVIDIA -3.18%.
- Consumer Discretionary and Communication Services sector shares followed: Tesla Inc -2.62%, Tapestry Inc -2.55%, Chipotle Mexican Grill -2.17% and Garmin -2.01%; Meta Platforms -1.41%, Live Nation Entertainment -0.61% and Alphabet Inc -0.55%.
- On the positive side, a mix of Energy and Health Care sector shares led advances in the first half: Paramount Skydance +10.36%, Dexcom +5.62%, Viatris +5.26%, Align Technology +3.78%, Devon Energy +3.66%, Merck & Co Inc+3.46%, International Flavors & Fragrances +3.38% and ConocoPhillips +3.37%.
US 10YR FUTURE TECHS: (Z5) Bear Threat Remains Present
Nov-11 16:56
- RES 4: 114-02 High Oct 17 and the bull trigger
- RES 3: 113-29 High Oct 22
- RES 2: 113-18+ High Oct 28
- RES 1: 113-02 High Nov 5& 7 and a key near-term resistance
- PRICE: 113-00 @ 16:47 GMT Nov 11
- SUP 1: 112-09+ Low Nov 5
- SUP 2: 112-08+ 38.2% retracement of May - Oct Upleg
- SUP 3: 112-08/06 100-dma / Low Sep 25 and a reversal trigger
- SUP 4: 112-02 Trendline support drawn from the May 22 low
A short-term bear theme in Treasuries remains in place. Attention is on a reversal trigger at 112-06, the Sep 25 low, and the 100-DMA, at 112-08. A clear break of these price points would expose a trendline support at 112-02. The trendline is drawn from the May 22 low. Resistance to watch is 113-02, the Nov 5 and 7 high. Clearance of this level would highlight a potential bullish reversal.
