BONDS: OAT Block trade
Jun-21 11:11
Block trade, suggest buyer:
OATU3 1.96k at 128.41.
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US DOLLAR LIBOR: USD LIBOR FIX - 22-5-2023
May-22 10:58
- O/N 5.06214
- 1M 5.12686
- 3M 5.37471
- 6M 5.45486
- 12M 5.43100
US TSYS: Slightly Richer With Further Debt Talks, Fedspeak Eyed
May-22 10:46
- Cash Tsys hold slightly richer after no clear progress in debt talks and the front end outperforming a touch after dovish Kashkari comments re looking towards skipping the June hike. Debt talk impasse continuation follows optimism building late last week before being dashed on Friday, and sees tense talks set for this week as cash balances start to look precarious. Biden and McCarthy are due to meet today, time unknown.
- 2YY -2.1bp at 4.245%, 5YY -2.1bp at 3.711%, 10YY -1.1bp at 3.661%, 30YY -0.8bp at 3.919%
- TYM3 trades 6+ ticks higher at 113-24+ but remains well within Friday’s range, with volumes at a low but recent average 235k. Resistance is seen at 114-05 (May 19 high) after which lies 114-27 (50-day EMA), whilst support sits at 113-08+ (Mar 15 low).
- Fedspeak headlines an otherwise bare docket, with non-current year voters Bullard (0830ET), Bostic & Barkin (1105ET) and Daly (1105ET).
- Bill issuance: US Tsy $57B 13W, $54B 26W Bill auctions (1130ET)
BONDS: Core Paper Off Best Levels, European Peripherals Get Most Of The Attention
May-22 10:40
Core bonds are happy to consolidate off best levels of the day, with European & U.S. equity index futures off their lows and U.S. regional lender PacWest showing higher pre-market after it announced the sale of a portfolio of real estate loans (albeit at a discount).
- That leaves U.S. Tsys bull steepening on the day, while Bunds & Gilts twist flatten.
- Greek paper remains the notable mover in the EGB space in the wake of the previously covered national election results, with the 10-Year Greek/German spread narrowing by the best part of 20bp (based of BBG generic yields), flirting with the 140bp mark as of typing. A quick reminder that the incumbent Greek ruling party outperformed pre-election polls. PM Mitsotakis has noted that he will not be looking to form a coalition as he looks to build on momentum via a second-round vote which could generate a mandate for his party to govern alone.
- Portuguese paper manages to benefit from the ratings outlook upgrade Portugal received from Moody’s on Friday.
- Meanwhile, the rally in Portuguese and Greek bonds is seemingly limiting any widening impetus in Spanish & Italian paper.
