HALISTER1: UST MORNING CALL: 7Y Sale, Month-End; RBS Sees Post-Fed Inflows

UST MORNING CALL: 7Y Sale, Month-End; RBS Sees Post-Fed Inflows

(Bloomberg) -- USTs extend gains in Asia hours after BOJ keeps policy unchanged, before staying in tight range through London hours.
  • Focus on GDP data, 7Y supply, ahead of month-end flows
  • 7Y auction should find support for recent rise in yields, though will need continued high levels of end-user participation to underwrite smoothly, JPMorgan says in note
  • Month-end duration extension flows may begin to impact the market; Barclays U.S. Aggregate is +0.07 yrs
    • With Japan shut tomorrow and most of next week, some overnight buying may have been driven by month-end demand, CRT strategist David Ader writes in client note
  • Maintain bullish stance on USTs, preferring belly intermediates; market is oversold, showing some signs of being short, expect post-Fed inflows, RBS says in client note
  • Technicals
    • Support: 129-22+ (April 25 high), 129-15+ (April 26 high)
    • Resistance: 130-06+/10 (April 19 low, 21-DMA), 130-19 (April 20 high)
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
David Ader (CRT Capital Group LLC)

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UUID: 7947283

HALISTER1: U.S. ECO PREVIEW: 1Q GDP, Jobless Claims Due in 5 Minutes

U.S. ECO PREVIEW: 1Q GDP, Jobless Claims Due in 5 Minutes

(Bloomberg) -- Gross domestic product seen expanding at 0.7% annual rate in 1Q after registering 1.4% growth rate in 2Q (forecast range 0.1% to +1.5%)
  • Would be weakest since 1Q 2015; growth seen restrained by net external trade, slower pace of consumption growth: Capital Economics economist Paul Ashworth
  • Initial jobless claims seen at 259k in week ended April 23 vs 247k prior week (forecast range 240k to 281k)
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Paul Ashworth (Capital Economics Na Ltd)

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UUID: 7947283

HALISTER1: U.S. ECO PREVIEW: Jobless Claims, GDP, Core PCE

U.S. ECO PREVIEW: Jobless Claims, GDP, Core PCE

(Bloomberg) -- Initial jobless claims seen at 259k in week ended April 23 vs 247k in prior week (survey range 240k-281k).
  • 1Q annualized GDP (advance) seen at +0.7% vs prior +1.4% (range +0.1% to +1.5%)
    • 1Q personal consumption seen at +1.7% vs prior 2.4% (range +1.4% to +2.0%)
    • GDP price index seen at +0.5% vs prior +0.9%
  • Core PCE expected at +1.9% q/q vs prior 1.3% (range +1.2% to +2.0%)
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283