Important Economic Data to be Released Soon, Market Trends Stable🙃
Outside of China, markets were quiet with the UK out on Bank Holidays on Monday, with US markets following suit next Monday on Labour Day. Markets saw markets holding their continuation patterns after Jackson Hole, with US equities rallying 0.5-1%, and bond yields softening about 3bp across the curve as the double header of 2yr and 5yr auctions came in as market expected.
Despite a number of top-tier data releases on the horizon, namely with JOLTS / PCE / ISM / NFP, Friday's 10y future straddle is coming in on the soft-side at just over 54 ticks vs a 68 tick average for this year's NFP weeks (source: Citi), signaling a lot of comfort over the rate market's current pricing (20% chance for a Fed hike). Furthermore, the 2yr bond at over a 5% coupon is the first time that has happened since 2006, no doubt drawing some initial buying interests and it's been a long time since savings accounts have seen these yields.
