US: FED Reverse Repo Operation
Jul-18 17:22
RRP usage recedes up to $391.652B from $399.401B on Wednesday. Number of counterparties at 66 from 69 prior. Today's usage compares to $327.066B on Monday, April 15 -- the lowest level since mid-May 2021.
NY Federal Reserve/MNI
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US: FED Reverse Repo Operation Rebound
Jun-18 17:22
- RRP usage bounces to $375.542B from Monday's near 3Y low of $333.429B; number of counterparties at 68. Today's usage compares to $327.066B on Monday, April 15 -- the lowest level since mid-May 2021.
NY Federal Reserve/MNI
FOREX: Greenback Returns Lower Post US Retail Sales, CHF and AUD Outperform
Jun-18 17:06
- Despite trading with a bid tone early Tuesday, softer-than-expected US retail sales placed the greenback under pressure throughout US trading hours. While the USD index unwound the entirety of the Friday upswing, downside momentum waned amid prospects of a US holiday tomorrow.
- There are two clear standouts in G10, with both AUD and CHF notably outperforming on the session, both up around 0.65% against the dollar.
- For AUDUSD, the RBA statement overnight was a touch more hawkish, and this has likely underpinned the strength, which has been bolstered by a moderate risk-on tone across global markets. Price action narrows the gap to key resistance, defined at 0.6714, the May 16 high. Overall, the pair remains in a range with key support remaining at 0.6576, the Jun 10 and both price points representing key short-term directional triggers.
- CHF outperformance comes ahead of this Thursday's SNB rate decision, at which markets remain evenly split on expecting either a rate cut or hold - but today's further strength might provide more space for easier policy ahead. USDCHF is now 3.5% below the late-May highs following the hawkish remarks from SNB’s Jordan.
- EURJPY extended its strong recovery from the Friday lows, briefly trading within 9 pips of the 170.00 mark once more. Note that the cross did pierce a key support at 168.14, a key trendline drawn from the Dec 7 ‘23 low. The line remains intact, however, a clear breach of it would undermine a bullish theme and highlight a potential reversal.
- BOJ minutes will be published overnight before UK CPI takes the focus Wednesday. The Bank of Canada summary of deliberations will cross in what is expected to be a subdued Wednesday session, owing to the US Juneteenth holiday.
US TSYS/SUPPLY: Review 20Y Bond Auction Reopen: Stops 2.1Bp Through
Jun-18 17:06
Tsy futures extend high (TYU4 110-28.5) after $13B 20Y bond auction reopen (912810UB2) stopped 2.1bp through: 4.452% high yield vs. 4.473% WI; 2.74x bid-to-cover vs. prior month's 2.51x (lowest since February).
- Indirect take-up at 77.89% vs. 70.76% last month; direct bidder take-up 16.35% vs. 19.81% prior; primary dealer take-up at 5.77% vs. 10.06% prior.
- The next 20Y auction (re-open) is tentatively scheduled for July 17.
