US TSY OPTIONS: Large TY Call
Oct-30 04:26
- TYZ4 (Dec 24) 113 calls for '19 x30,000. Delta 21%
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NZD: NZD Hits New Ytd Highs On China Stimulus
Sep-30 04:23
- NZD/USD has reached a new ytd high after hitting 0.6375, the move has been driven by optimism around Chinese stimulus measures, including the People's Bank of China's plan to lower mortgage rates.
- This upbeat sentiment benefits the risk-sensitive NZD & AUD, while a slightly subdued USD has helped following a dovish Federal and expectations and a potential rate cut in November.
- Geopolitical risks in the Middle East are providing some support to the safe-haven USD, capping the pair's upside.
GOLD: Pullbacks From All-Time High
Sep-30 04:22
Gold is 0.2% lower in today’s Asia-Pac session, after closing 0.5% lower at $2658.24 on Friday.
- As a result, bullion currently sits some $30 lower than Thursday’s all-time high of $2685.
- The softer performance for the yellow metal came despite a benign US inflation, consumption, and PCE inflation report underpinned expectations for more rate cuts from the FOMC ahead, including the potential for another -50 bps in November.
- Lower rates are typically positive for gold, which doesn’t pay interest.
- According to MNI’s technicals team, last week’s move 0.9% move higher confirmed a resumption of the primary uptrend, with focus on $2675.5 next, a Fibonacci projection. Firm support lies at $2583.9, the 20-day EMA.
- After reaching its highest level since end 2012 yesterday, silver underperformed on Friday, down by ~1.5%. For silver, bullish conditions remain intact and this week’s climb reinforces this set-up. Clearance of next key resistance at $32.518, would open $33.880, a Fibonacci projection. Firm support lies at $29.69, the 50-day EMA.
JGBS AUCTION: Mixed Result For Today’s 2Y Supply
Sep-30 03:50
The 2-year bond supply has demonstrated mixed demand metrics today, as the low price met dealer expectations, which had been projected at 100.005, as per the BBG poll, but the cover ratio decreased to 3.8149x from 5.542x in August. The auction tail was also longer than last month.
- Despite today's auction occurring at a similar outright yield to late August’s level, the bid at today’s auction was significantly weaker than last month.
- It’s important to highlight that shorter-dated JGB yields have risen today, following Ishiba’s unexpected victory in the LDP leadership run-off against Takaichi, a noted BoJ dove.
- Additionally, today's result stands in contrast to the strong demand metrics seen at this month's 5-year auction.
- The cash 2-year yield is little changed in post-auction trade.
