Overnight Treasury Market Summary
19-Sep-25 07:57 ET 10-Yr: -8/32..4.143%..
USD/JPY: 148.10..
EUR/USD: 1.1744Pressure Persists
- U.S. Treasuries are on track for a lower start with longer tenors set to continue pacing the post-FOMC retreat. Treasury futures spent the early part of the night in a sideways range, slipping to lows once the focus shifted to action in Europe. The market attempted a bounce, but slipped to fresh lows in recent action. The overnight news flow featured the outcome of the latest policy meeting at the Bank of Japan. The BoJ left its policy rate at 0.50%, as expected, though two policymakers voted in favor of an increase. The central bank announced a plan to sell its ETF holdings at JPY330 bln per year while J-REITS will be sold at a pace of JPY5.5 bln per year. In Europe, Germany's PPI fell more than expected in August while the U.K.'s August Retail Sales beat expectations, weighing on expectations for a rate cut from the Bank of England. The U.S. session, however, will not see any data. Crude oil holds a modest loss while the U.S. Dollar Index is up 0.4% at 97.69.
- Yield Check:
- 2-yr: +2 bps to 3.59%
- 3-yr: +2 bps to 3.57%
- 5-yr: +4 bps to 3.70%
- 10-yr: +4 bps to 4.14%
- 30-yr: +3 bps to 4.75%
- News:
- President Trump is expected to speak with China's President Xi this morning.
- Softbank is reportedly reducing the headcount in its Vision Fund by up to 20%.
- Spain's economy minister called on the EU to "engage" China to reduce the EU's trade deficit with China.
- European Central Bank policymaker Centeno said that inflation risks remain tilted to the downside and that inflation below 2.0% can't be tolerated for too long.
- UBS, Morgan Stanley, and Bank of America no longer expect the Bank of England to cut its bank rate before the end of the year.
- Japan's August National CPI was up 0.1% m/m (last 0.1%), rising 2.7% yr/yr (last 3.1%). National Core CPI was up 2.7% yr/yr, as expected (last 3.1%).
- New Zealand's August trade deficit reached NZD1.19 bln (expected deficit of NZD746 mln; last deficit of NZD716 mln). August Credit Card Spending was up 3.5% yr/yr (last 1.6%).
- Germany's August PPI was down 0.5% m/m (expected -0.1%; last -0.1%), falling 2.2% yr/yr (expected -1.8%; last -1.5%).
- U.K.'s August Retail Sales rose 0.5% m/m (expected 0.4%; last 0.5%), increasing 0.7% yr/yr (expected 0.6%; last 0.8%). August Core Retail Sales rose 0.8% m/m (expected 0.3%; last 0.4%), increasing 1.2% yr/yr (expected 0.8%; last 1.0%). August Public Sector Net Borrowing reached GBP18.00 bln (expected GBP12.80 bln; last GBP1.05 bln).
- France's September Business Survey fell to 96 from 97, as expected.
- Commodities:
- WTI Crude: -0.3% to $63.36/bbl
- Gold: UNCH at $3679.80/ozt
- Copper: +0.3% to $4.612/lb
- Currencies:
- EUR/USD: -0.4% to 1.1744
- GBP/USD: -0.6% to 1.3481
- USD/CNH: +0.2% to 7.1178
- USD/JPY: +0.1% to 148.10
- No Data on Today's Schedule