UST MORNING CALL: ‘Very Attractive’ From Global Perspective
Source: BFW (Bloomberg First Word)
People
Aaron Kohli (Bank of Montreal)
David Ader (CRT Capital Group LLC)
Jim Vogel (Ftn Financial)
Marty Mitchell (The Mitchell Market Report LLC)
Topics
UST Morning Call
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UUID: 7947283
(Bloomberg) -- “While the 1.89% 10Y yield offered by the Treasury market may seem midrange and uninspired given the U.S. economic and inflation profile, from a global perspective it remains comparatively very attractive,” CRT strategist David Ader says in note.
Alert: HALISTER1- “Moreover, with the outlook for the dollar stable at worst, improving if the Fed’s able to make more meaningful progress towards normalization, the prospects for the Treasury market are enhanced further”
- Other observations from strategist morning notes:
- BMO (Aaron Kohli ): “Majority of the UST response to the Brussels attacks was largely undone into the U.S. open, and we anticipate range trading to prevail”
- FTN (Jim Vogel): “Although lower inflation has been a global event, markets are treating its return as a U.S. event,” and “the difference in term inflation expectations explains all of the widening between U.S. and German yields, for example, now that the Fed has dialed down its December rate outlook”
- Marty Mitchell (independent): “We will be keying on support on the 10yr at the 10dma at 1.92% (Monday’s low)” and are “concerned about a series of lower highs (price basis) on the 10yr since last Thursday,” as “this dynamic puts support at 1.92% at risk of falling to selling pressure”
- “Direction in yields this morning should be tied to the direction in equities, so it is advisable to monitor the flows on the U.S. equity futures early and the broad market after the opening bell”
Source: BFW (Bloomberg First Word)
People
Aaron Kohli (Bank of Montreal)
David Ader (CRT Capital Group LLC)
Jim Vogel (Ftn Financial)
Marty Mitchell (The Mitchell Market Report LLC)
Topics
UST Morning Call
To de-activate this alert, click here
UUID: 7947283