US TSYS: Repo Reference Rates

Tsy yields and trading volumes resume climb as Japan and UK return from extended weekend. Riksbank kicked off the week's flood of CB policy annc's with higher than expected 100bp rate to 1.75%. Surge in German PPI +45.8% YoY (+36.8% exp) contributed to overnight selling.

• Focus on FOMC policy annc and Summary of Economic Projections tomorrow at 1400ET followed by Chair Powell presser at 1430ET, Fed expected raise rates 75bp to 2.25-2.5%. Bank of England Thursday in addition to Boj, SNB and Norges
• Tsy yields currently making new multi-year highs, 2YY close to topping 4.0% w/ 3.9877% high print (Oct 2007 lvl) currently at 3.9643% +.0286; 10YY 3.5513% high currently 3.5434% +.0530. Volume trade improves, TYZ2>375k.
• Housing data coming up at 0830ET (prior, est):
  
  
  • Building Permits (1.685M rev, 1.604M); MoM (-0.6% rev, -4.8%)
  • Sep-20 0830 Housing Starts (1.446M, 1.450M); MoM (-9.6%, 0.3%)
• US Treasury auctions:
  • $12B 20Y Bond auction re-open (912810TK4) at 1300ET
• Geopol: RUSSIA: Medvedev Backs Votes For Ukrainian Regions To Join Russia-RTRS: Reuters reporting that former Russian president and close ally of Vladimir Putin, Dmitry Medvedev has stated his vocal backing for referendums to be held in Russian-occupied regions of Ukraine that could see them annexed in a similar fashion to the Crimea in 2014.
• UKRAINE: Breakaway Luhansk To Hold Referendum On Joining Russia 23-27 Sep-TASS:

Structural long positioning has disappeared across European bond futures contracts in September.

• Most contracts are now structurally short, with the others flat.
• In the past week, we've seen further short setting and longs reduced.
• Full MNI Pi analysis has been emailed to subscribers, and is available on our website.

Source: MNI Pi