US TSY FUTURES: Gradually Extending Session Lows, Through Technical Support
Jun-13 17:20
* Treasury futures continue to extend session lows, markets alert for any updates on Middle East t...
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PIPELINE: Corporate Bond Update: $3.5B Woodside Finance 4Pt Launched
May-14 17:17
- Date $MM Issuer (Priced *, Launch #)
- 05/14 $3.5B #Woodside Finance 500M 3Y +105, $1.25B 5Y +130, $500M 7Y +145, $1.25B 10Y +160
- 05/14 $2.5B #Societe Generale $1B 4NC3 +120, $500M 4NC3 SOFR+142, $1B 6NC5 +135
- 05/14 $1.5B #Var Energi $750M each: 5Y +175, 10Y +205
- 05/14 $1B *AIIB WNG 10Y SOFR+61
- 05/14 $1B #Athene 30Y +172
- 05/14 $750M #Swedbank 5Y +93
- 05/14 $600M #Peachtree Corners 10Y +150
- 05/14 $Benchmark PSEG Power 5Y +110, 10Y +132
- 05/14 $500M Bombardier 8NC3
- 05/14 $500M Navient 7NC
- Expected Thursday:
- 05/15 $Benchmark JICA 5Y SOFR+67a
FOREX: Dollar Index Fully Reverses Monday Surge Before Stabilising
May-14 17:11
- Tuesday’s theme of a weakening US dollar initially extended today, helped lower by major equity benchmarks consolidating their recent strength and headlines surrounding trade talks providing an additional greenback headwind. The US and South Korea agreed to share a mutual understanding of the principles they hold for operating foreign exchange markets and to continue discussions on FX policy. The headlines spurred some USDKRW weakness, which then filtered through to a broader dollar move against G10 peers.
- Later in the session, an article dropped on Bloomberg countering this theme, and suggesting US officials are not seeking to include currency policy pledges in trade deals, according to a person familiar with the matter.
- Overall, the USD index is broadly unchanged, despite initially bridging the gap to last Friday’s close, and eroding the entirety of the US/China tariff reprieve inspired rally to start the week.
- Hardest hit on Wednesday was USDJPY, which has traded in an impressive 206 pip range. The Japanese yen had been trading in a relatively weak manner amid the risk sentiment surge, however, discussions on FX policy being discussed between other administrations prompted some speculative yen appreciation. USDJPY traded as low as 145.61, and was down as much as 1.27% before stabilising. USDJPY has pared over half the move and stands around 146.70 as we approach the APAC crossover.
- Elsewhere, the likes of AUD and NZD are underperforming (down around 0.45%), although they still remain among the best performers in G10 this week. For AUDUSD, Monday’s move lower was considered corrective and another test above 0.6500 today reinforces the underlying bullish tone. Further strength would open 0.6528, the Nov 29 high, although there appears scope for a more protracted recovery towards the US election related highs at 0.6688.
- Thursday’s APAC session will be highlighted by the Australian unemployment report, before the focus turns to UK GDP. In the US, PPI and Retail Sales data are scheduled, which will be followed by Fed Chair Powell speaking.
USD: Greenback Pops Higher on Source Report Concerning Currency Pledges
May-14 17:00
- A decent bump higher for the dollar in recent trade, as an article drops on Bloomberg suggesting US officials are not seeking to include currency policy pledges in trade deals, according to a person familiar with the matter.
- Markets remain sensitive to these types of headlines on Wednesday, as broader greenback pressure was seen earlier in the session as it was announced that The US and South Korea agreed to share a mutual understanding of the principles they hold for operating foreign exchange markets and to continue discussions on FX policy.
- USDJPY rallied from 146.50 to 147.11 on the headline but has reversed back to 146.70 at typing. The pair has remained within its impressive 206 pip range, having printed as low as 145.61 during the European morning.
