US Treasuries Whipsaw, US Dollar Up
US Treasuries drop and recover on strong new home sales
- T-Notes and T-Bonds edged lower Tuesday after a renewed global appetite for risk and stronger US data left the complex without much buying interest. The losses were broadly shared across the curve
- Yield
- 2-yr: +2 bpts to 0.69%
- 5-yr: +2 bpts to 1.69%
- 10-yr: +3 bpts to 2.40%
- 30-yr: +3 bpts to 3.20%
- News
- Greece has submitted a proposal to its official creditors (the IMF, European Commission, and ECB) that appears to make enough concessions to obtain more financing
- Durable Goods Orders fell 1.8% in May after declining a revised 1.5% from -1.0% in April, consensus expected -0.5%
- Excluding transportation, Durable Goods Orders increased 0.5% in May after a 0.3% decline in April (revised from -0.2%). The consensus expected +0.6%
- Fed governor Jerome Powell, FOMC voter and monetary policy moderate, said that conditions for a rate hike may be in place by September
- The FHFA Housing Price Index climbed 0.3% in April, the same gain as was seen in March
- New Home Sales rose 2.2% in May to 546,000 from an upwardly revised 534,000 (from 517,000) in April, consensus called for 525,000 sales
- The $26-B 2-yr T-Note auction was met with solid demand and stopped through by less than 1 bspt.
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The US Dollar (.DXY) Index gained 1.18% today to 95.45 after traders who bought Euros in anticipation of a post-Greek accord rally were disappointed and unwound their positions. During the US session, New Home Sales for May rose past estimates and this added to the Buck’s gains
- EUR/USD: -1.63% to 1.1163
- The Greek sovereign 10-year note yield fell 54 bpts to 10.36% as hope for a deal between Greece and its official creditors mounted
- The Eurozone’s Markit Composite PMI beat expectations, rising to 54.1 in June from 53.6 in May
- Both Germany and France beat expectations in the service and manufacturing sectors, demonstrating some resilience in the face of uncertainty surrounding Greece
- GBP/USD: -0.73% to 1.5714
- In the U.K., CBI Industrial Trends Orders fell to -7 in June from -5 in May, falling short of expectations for a positive reading
- USD/JPY: +0.38% to 123.87
- Japan’s Manufacturing PMI missed expectations and fell to 49.9 in June from 50.9 in April
- USD/CHF: +1.41% to 0.9342
- USD/CAD: +0.24% to 1.2344
- AUD/USD: -0.03% to 0.7724
Stay tuned…
HeffX-LTN
Paul Ebeling
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