EmailBond Market Update
The market at 11:54 ET
| 10-Year: -18/32....%.... GNMAs: .... USD/JPY: 79.914.... EUR/USD: 1.2684 |
Moving the Market
 |
Personal Income (8:30): Actual 0.2%, Briefing 0.0%, consensus 0.1%, prior 0.2% (no revision) Personal Spending (8:30): Actual 0.0%, Briefing 0.1%, consensus 0.1%, prior 0.1% (revised from 0.3%) PCE Prices - Core (8:30): Actual 0.1%, Briefing 0.2%, consensus 0.2%, prior 0.1% (no revision) Chicago PMI (9:45): Actual 52.9, Briefing 52.0, consensus 53.0, prior 52.7 (no revision) Michigan Sentiment - Final (9:55): Actual 73.2, Briefing 73.0, consensus 74.1, prior 74.1 |
Risk Off (Sort of)
29-Jun-12 11:54 ET
10-Yr: -18/32..1.642%..
USD/JPY: 79.914..
EUR/USD: 1.2684
Risk Off (Sort of): EU leaders defied the market's low expectations for this week's summit. Subsequently, the risk trade is off in the Treasury market... sort of. The back end of the curve is bearing the brunt of the selling pressure, yet the front end of the curve is fluctuating between small gains and small losses. All spots on the curve are well off their highest yields of the session. It is a bit surprising that losses at the back end aren't more severe than they currently are. There is a plan to save the eurozone (again) and the 10-year note is down by only a little more than half a point. The tempered losses are perhaps suggestive of the idea that market participants are not convinced that the new plan to recapitalize banks directly from the EFSF/ESM and to allow those rescue fund vehicles the flexibility to buy sovereign bonds is indeed going to have a long-lasting influence as a turnaround factor. Time will be the ultimate answer there, but the underlying sense, or concern, is that the brush fire in the eurozone hasn't been put out completely by the actions taken at this week's summit. They may have provided some financial reprieve, but the real economic issue of weak economic growth remains.2-year: Current: 0.305%, High: 0.336%
3-year: Current: 0.415%, High: 0.442%
5-year: Current: 0.724%, High: 0.761%
7-year: Current: 1.111%, High: 1.148%
10-year: Current: 1.642%, High: 1.679%
30-year: Current: 2.741%, High: 2.779%
