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Global fixed income markets are in turmoil, with record-high sell-off of US Treasury bondsđł
So much for a quiet end to the summer.
Treasury bonds saw the 6th consecutive day of sell-off, with 30y yields rising to nearly 4.40%, breaking the panic highs in 2022 and approaching levels last seen in 2010/2011. The pandemonium started with the weakest 20y JGB auction in recorded history with a 7bp tail, causing their yields to spike by 7-10bp across the curve and catalyzing the global fixed income sell-off right from the morning.
#fixedincome #treasury #bond #curve #US
So much for a quiet end to the summer.
Treasury bonds saw the 6th consecutive day of sell-off, with 30y yields rising to nearly 4.40%, breaking the panic highs in 2022 and approaching levels last seen in 2010/2011. The pandemonium started with the weakest 20y JGB auction in recorded history with a 7bp tail, causing their yields to spike by 7-10bp across the curve and catalyzing the global fixed income sell-off right from the morning.
#fixedincome #treasury #bond #curve #US
Ministry of Finance adjusts strategy: Long-term bond issuance may become a necessityđ
With the Treasury having suffered through highly uncomfortable episodes of tight cashflow management during the recent debt-ceiling showdown, they have also announced that they would target to keep a higher % of cash on hand for liquidity management purposes going forward, and will continue to maximize the amount of borrowing needs being funded by the more flexible front-end T-bills market. However, the Treasury also maintains an internal 20% threshold limit of T-Bill funding vs longer-dated coupons, which has been hit, so additional funding needs will have to be borne by longer dated coupon issuances.
#treasury #liquidity #market #coupon
With the Treasury having suffered through highly uncomfortable episodes of tight cashflow management during the recent debt-ceiling showdown, they have also announced that they would target to keep a higher % of cash on hand for liquidity management purposes going forward, and will continue to maximize the amount of borrowing needs being funded by the more flexible front-end T-bills market. However, the Treasury also maintains an internal 20% threshold limit of T-Bill funding vs longer-dated coupons, which has been hit, so additional funding needs will have to be borne by longer dated coupon issuances.
#treasury #liquidity #market #coupon
Continued sell-off of US Treasury bonds, multiple factors causing rise in interest ratesđ„ș
Unfortunately, the temporary lull in China-led risk-off was no panacea for the US bonds sell-off, as stable initial claims (-11k to 239k) and rebound in Philly Fed pushed bond yields higher throughout much of the session. Philly Fed rebounded +25.5 points to print a +12 headline for the first positive print since a year ago, significantly above forecast. The move was led by general improvements across all sub-components, but particularly with a 30-point surge in new orders. 30yr real yields (inflation-adjusted) went to fresh highs at 2.10%, while the yield curve continued to bear-steepen as well as the move higher in discount rates is now being led by the back-end and economic improvements, rather than a hawkish Fed. 10yr yields hit cycle highs at 4.33% before rebounding somewhat into the close as equities continued falter, with the fear of a large risk-off move causing traders to pare some of their short bond positions.
#US #treasury #Bond #Fed #positions
Unfortunately, the temporary lull in China-led risk-off was no panacea for the US bonds sell-off, as stable initial claims (-11k to 239k) and rebound in Philly Fed pushed bond yields higher throughout much of the session. Philly Fed rebounded +25.5 points to print a +12 headline for the first positive print since a year ago, significantly above forecast. The move was led by general improvements across all sub-components, but particularly with a 30-point surge in new orders. 30yr real yields (inflation-adjusted) went to fresh highs at 2.10%, while the yield curve continued to bear-steepen as well as the move higher in discount rates is now being led by the back-end and economic improvements, rather than a hawkish Fed. 10yr yields hit cycle highs at 4.33% before rebounding somewhat into the close as equities continued falter, with the fear of a large risk-off move causing traders to pare some of their short bond positions.
#US #treasury #Bond #Fed #positions
The CPI release led to unexpected fixed income activityđ
While the magnitude of the beat was not particularly shocking, but the wave of fixed income and risk short-squeeze this week had setup relatively lop-sided positioning heading into the number. Although equity markets held strong for much of the morning session, US treasuries clearly traded on their backfoot all-day in preparation for the 30yr auction.
Bond markets already went into the 1pm supply with a massive 13bp concession post-CPI, but a terrible auction crushed whatever risk-buying support we had left in the day. The 30yr issue tailed +3.7bp for the largest tail in 2 years, with a feeble 2.35x bid-to-cover (weakest since march) and user-demand dumping to just 81.8% for the weakest showing since Dec 2021. Bonds sold off further into the close as the yield-curve spiked between 9-16bp higher across the curve in a bear steepening manner, with the risk-off sentiment spilling over to FX (DXY +0.7%) and equities (SPX -1%).
#treasury #bondmarket #auction #marketvolatility #macro
While the magnitude of the beat was not particularly shocking, but the wave of fixed income and risk short-squeeze this week had setup relatively lop-sided positioning heading into the number. Although equity markets held strong for much of the morning session, US treasuries clearly traded on their backfoot all-day in preparation for the 30yr auction.
Bond markets already went into the 1pm supply with a massive 13bp concession post-CPI, but a terrible auction crushed whatever risk-buying support we had left in the day. The 30yr issue tailed +3.7bp for the largest tail in 2 years, with a feeble 2.35x bid-to-cover (weakest since march) and user-demand dumping to just 81.8% for the weakest showing since Dec 2021. Bonds sold off further into the close as the yield-curve spiked between 9-16bp higher across the curve in a bear steepening manner, with the risk-off sentiment spilling over to FX (DXY +0.7%) and equities (SPX -1%).
#treasury #bondmarket #auction #marketvolatility #macro
- #MicroStrategy co-founder Michael Saylor marked the three-year anniversary of adopting #bitcoin as the company's main treasury asset.
- He tweeted about the company's initial Bitcoin #purchase of 21,454 BTC for $250 million, averaging at $11,653 per BTC.
- MicroStrategy's decision to use Bitcoin in its #treasury continues to attract significant attention from #investors and industry experts.
- The tweet underscores the company's early commitment to cryptocurrency, which remains noteworthy after three years.
$BTC $ETH $BNB
- He tweeted about the company's initial Bitcoin #purchase of 21,454 BTC for $250 million, averaging at $11,653 per BTC.
- MicroStrategy's decision to use Bitcoin in its #treasury continues to attract significant attention from #investors and industry experts.
- The tweet underscores the company's early commitment to cryptocurrency, which remains noteworthy after three years.
$BTC $ETH $BNB
- The USDC Treasury has burned 82 million USDC tokens, valued at $82.1 million, in response to market dynamics.
- Additionally, the #treasury has minted 64 million USDC tokens, worth $64.1 million, as part of its supply management.
- These actions are aimed at adjusting the #USDC token supply to meet market demand and other relevant factors.
- The #burns and mints reflect ongoing efforts to maintain stability and optimize the USDC ecosystem.
- #Whale Alert provides detailed insights into significant #cryptocurrency transactions, including these USDC-related activities.
$PEPE $USDC $SHIB
- Additionally, the #treasury has minted 64 million USDC tokens, worth $64.1 million, as part of its supply management.
- These actions are aimed at adjusting the #USDC token supply to meet market demand and other relevant factors.
- The #burns and mints reflect ongoing efforts to maintain stability and optimize the USDC ecosystem.
- #Whale Alert provides detailed insights into significant #cryptocurrency transactions, including these USDC-related activities.
$PEPE $USDC $SHIB
