US TSY FUTURES: Post-PPI Reaction
Aug-11 12:35
- Fast two-way trade as Treasury futures gap higher then back lower following higher than expected PPI Final Demand MoM (0.3% vs. 0.2% est), YoY (0.8% vs. 0.7%).
- Sellers build momentum as futures extend lows, front month Sep'23 10Y futures mark 110-16.5 low, through initial support at 110-20+ (Low Aug 10), next support at 109-24 bear trigger.
- Curves bear steepen: 3M10Y +3.098 at -130.854, 2Y10Y +1.244at -72.793.
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MNI: US JUN CPI 0.2%, CORE 0.2%; CPI Y/Y 3.0%, CORE Y/Y 4.8%
Jul-12 12:30
- MNI: US JUN CPI 0.2%, CORE 0.2%; CPI Y/Y 3.0%, CORE Y/Y 4.8%
- US JUN ENERGY PRICES 0.6%
- US JUN OWNERS' EQUIVALENT RENT PRICES 0.4%
MNI: US JUN CPI UNROUNDED M/M 0.180%, CORE 0.158%
Jul-12 12:30
- MNI: US JUN CPI UNROUNDED M/M 0.180%, CORE 0.158%
CANADA: USDCAD With Room To Swing On US CPI
Jul-12 12:24
- USDCAD has pushed higher back to little changed on the day, just off a session high of 1.3231, ahead of US CPI shortly and then the BoC decision at 1000ET.
- GoCs marginally outperform Tsys across the curve, holding the Can-US 2YY spread at a relatively tight -6.5bps.
- The overnight low of 1.3200 probed a key support at 1.3203 (Jul 4 low). A clearer break could open a bear trigger at 1.3117 (Jun 27 low), whilst the resistance is seen at 1.3304 (Jul 10 high).
- There’s little option expiry at nearby strikes for today’s NY cut, potentially creating more scope for moves on any surprises.
