Halister News

(Bloomberg) -- Agreement to suspend U.S. debt ceiling until December means “the stage is set for a mild selloff in rates,” with the new deadline “acting as a barrier against any large selloffs,” Citi strategist Jason Williams says in note.

• Recommend short in EDH9 at 1.61%, targeting 1.85%, stop at 1.45%
• Red eurodollars “can reprice quickly on a change in sentiment”
• With fed funds pricing in next full hike by April 2019, “risk is now for the market to price in a somewhat higher pace of fed funds increases” based on economic fundamentals

To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net Greg Chang

(Bloomberg) -- BTP yield is slicing through the 1.97% August low and challenging the 55-week average line at 1.96%. See live chart here.

• Italy 10y yield -10bps to 1.93%
• Yield has recently broken down below its important long-term support line at 2.06% which has fueled some bear capitulation
  • NOTE: Aug. 31, BTP Yield Slips Below Key Support That Held 12 Times in August
• Italy-Germany 10y yield spread -5bps to 163bps, contracts to two-week lows; support at 161bps and 158bps
• NOTE: Sejul Gokal is a FICC technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice

To contact the reporter on this story: Sejul Gokal in London at sgokal1@bloomberg.net To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net Anil Varma