UST MORNING CALL: 3s Vulnerable to Fed Repricing; FOMC Speakers
Source: BFW (Bloomberg First Word)
People
Jim Vogel (Ftn Financial)
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UUID: 7947283
(Bloomberg) -- Focus turns to slew of Fed speakers this week, and front-loading of supply.
Alert: HALISTER1- At least half of overnight selloff is set-up for supply, 3s have cheapened on the curve, sector is vulnerable to hawkish Fed repricing, 10s look richer on the curve, writes BMO in a client note
- Fed’s George speaks at 10am today
- Hawkish regional posturing, after six weeks of dovish Fed messages is expected, particularly after June payrolls, writes Jim Vogel of FTN financial in a client note
- Turn more cautious on the market near term, longs should be careful, keep an eye on momentum measures, weekly chart momentum is the most overbought since early 2015, writes RBS in a client note
- CFTC data show specs added flatteners, selling FV (-$5.8b) vs longer contracts (TY $3.5b, US $7.4b, WN $4.6b); asset managers sold TY, added in TU, leveraged funds did the opposite, resulting in large risk transfer, writes Nomura in a client note
- Technicals:
- Resistance: 134-00+ (July 8 high); 134-07+ (July 6 high)
- Support: 133-11 (July 7 low); 133 (July 5 low); 132-14 (June 30 low)
Source: BFW (Bloomberg First Word)
People
Jim Vogel (Ftn Financial)
To de-activate this alert, click here
UUID: 7947283