HALISTER1: UST 5s30s Curve Breaches 119bp as Long-End Lags Post Brainard

UST 5s30s Curve Breaches 119bp as Long-End Lags Post Brainard

(Bloomberg) -- USTs retreat from sharp gains post-Brainard comments but maintain a steeper bias as investors show lack of appetite to fade recent JGB, European curve steepening moves.
  • 5s30s breached 119bp for the first time since Aug. 5 release of July jobs report
  • Ahead of the 1pm ET UST auctions and Brainard’s comments, a large 10k block buyer emerged in 5Y futures at 121-02 with trade executed at 12.23pm ET around 525k/DV01
    • Morgan Stanley analysts earlier said still favoring owning 5Y sector outright as “remain skeptical” of a Fed hike this year
    • Recent investor sentiment suggests a steeper U.S. curve following JGB, European bond trend
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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