HALISTER1: UST MORNING CALL: Mixed Views on Fed Dots; 10Y Overbought: JPM

UST MORNING CALL: Mixed Views on Fed Dots; 10Y Overbought: JPM

(Bloomberg) -- Treasuries continue to rally overnight as the market reprices Brexit risks. Focus on Fed decision on Wed.
  • Tactical indicators move into overbought territory; 10Y note rally meeting resistance near 1.60%, watch for signs of a bearish reversal but don’t see any at this point, JPMorgan writes in a client note
  • Credit Suisse strategists write in note that “persistently call-heavy” trading in TY options has pushed sentiment indicator to another sell signal: MORE
  • Focus on dots in the Fed decision; expect a group of dots to move to one hike in 2016, even if the median dot stays at two; expect front-end of U.S. rate market to price in less than the Fed -- a typical, historically correct bias, RBS writes in a note
    • Dots likely keep two hikes on the calendar for this year; should lead to mild flattening, unlikely to inspire a large move, BMO writes in a client note
  • Technicals:
    • Resistance: 132-07+
    • Support: 131-18 (June 13 low); 131-09 (June 9 high)
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER1: U.S. ECO PREVIEW: Retail Sales, Import Prices Due in 5 Minutes

U.S. ECO PREVIEW: Retail Sales, Import Prices Due in 5 Minutes

(Bloomberg) -- Retail sales seen rising 0.3% m/m in May after increasing 1.3% in April (forecast range +0.1% to +0.7).
  • April’s advance was largest since March 2015; 11 of 13 major categories scored gains
  • Bloomberg Intelligence: “Total sales for 2Q need to rise roughly 3.5-4.0% for growth to be on track to hit the Fed’s target for 2016. This appears to be within reach”
  • Separately, import price index seen rising 0.7% m/m in May after increasing 0.3% in April (forecast range +0.2% to +1.4%)
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER1: India Court Declares Mallya ‘Proclaimed Offender,’ PTI Reports

India Court Declares Mallya ‘Proclaimed Offender,’ PTI Reports

(Bloomberg) -- An Indian court on Prevention of Money Laundering Act declares ex-billionaire beer baron Vijay Mallya a “proclaimed offender” in a case related to bank loan, Press Trust of India reports, citing the order.
  • Mallya will now have to appear before PMLA court in 30 days, CNBC-TV18 television channel added
  • Sumanto Bhattacharya, a spokesman for Mallya and UB Group, said he doesn’t have an immediate comment on the court order
  • “Now the ED’s latest move seems to be to approach the PMLA court to declare me a proclaimed absconder for reasons that I cannot understand. I left India as per schedule on March 2nd to attend meetings in Geneva at which time no ED proceedings had commenced and no summons issued to me,” Mallya said in a statement on June 12
  • NOTE: Mallya Says India Probe Agency Steps Make Debt Repayment Harder Link
  • NOTE: Modi Faces Battle to Extradite Beer Baron Mallya From U.K. Link
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
KAIR IN (Kingfisher Airlines Ltd)
1514Z IN (UB Group)

People
Vijay Mallya (Kingfisher Airlines Ltd)

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