GOLD: Gold Delivers Minor Gains in Asia
May-09 04:31
- After two days of significant declines, gold had a minor bounce in Asia today, gaining +0.28% at US$3,314.60.
- With the European and US trading days still to come, gold so far this week is up +2.25% despite the falls on Wednesday and Thursday.
- Gold last ground last night as the USD reasserted itself following the announcement of a trade deal between the UK and the US.
- The deal comes just prior to a proposed meeting between US and Chinese officials in which President Trump said he believes tangible results will come from.
- Markets then focused on the fact that US rates are on hold, piling back into the dollar which in turn sent gold lower.
- Gold has steadied just marginally above the 20-day EMA of $3,284.08 as all major moving averages remain upward sloping; a sign that the bullish momentum remains.
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US TSY FLOWS: Block SELL: UXYM5
Apr-09 04:13
4631 of UXYM5 traded at 112-14, post-time 04:53:15 BST (DV01 $403,533). The contract is currently dealing at 111-26+, -2-06 from closing levels.
US TSYS: Savage Bear-Steepener As China Retaliation In Focus
Apr-09 03:56
TYM5 is 110-12+, +1-02+ from closing levels in today's Asia-Pac session.
- Cash US tsys have extended yesterday’s decline during the Asia-Pac session. The sell-off reflects growing concerns that China may retaliate against tariffs by offloading US assets, including US tsys.
- At present, cash US tsys are trading 3-16bps cheaper across benchmarks, with the curve steeper.
- Yesterday, Trump officials confirmed 104% added tariff on China went into effect at noon.
- Concurrently, China vowed to "fight to the end".
- On the local front, the focus turns to the March FOMC minute release at 1400ET today, CPI on Thursday and PPI on Friday morning.
- Reminder, banks kick off the latest earnings cycle this Friday with Bank of New York Mellon, Wells Fargo & Co, JPMorgan Chase and Morgan Stanley reporting.
JGBS: Savage Bear-Steepener As US Long-End Sell-Off On China Fears
Apr-09 03:51
In Afternoon dealings, JGB futures have gapped lower, -34 compared to the settlement levels.
- (MNI The BoJ is closely analysing how US tariffs will affect Japan’s economy and prices, amid growing uncertainty, Governor Kazuo Ueda told lawmakers on Wednesday.
- The BoJ will manage monetary policy in an appropriate manner, while carefully monitoring the economy, prices and financial markets, he added, without elaborating on how and when the bank might act.
- The bank is also examining how the tariffs evolve and impact the BoJ's economic and price views, he continued.
- Today’s weakness in JGBs appears to be driven by moves in cash US tsys, which have extended their decline during the Asia-Pac session. The sell-off reflects growing concerns that China may retaliate against tariffs by offloading US assets, including tsys. At present, cash US tsys are trading 3–16 basis points cheaper across the curve.
- Cash JGBs have also bear-steepened, with yields 1-30bps higher. The benchmark 30-year yield is 28.3bps higher at 2.812%, a new cycle high and the highest since 2004.
- The swaps curve has twist-steepened, with rates 3bps lower to 20bps higher, pivoting at the 10-year. Swap spreads are tighter.
