US Yield Curves Continue Strength

NQ, Silver and Gold also safe havens today OpeX

Magnelibra observed strong US treasury buyers consistently in Asia and Europe, early on in the session the long end was the beneficiary as a consistent treasury bid kept the Basis markets well above our fair values. The US Yield Curves were unchanged up until pre NY session then after UnivofM Sentiment saw inflation expectations hitting 3.8% a 2 YR low. (good for Powells case to pivot)

The consistent bid was also led by continued banking contagion which our readers know has been backstopped by the Central Banks BTFP and Discount Window programs. Nonetheless with the EU raising 50bp and Credit Suisse despite the SNB loans still continues to plague the sector. We are quite certain we will start to here about Deutsche Bank as that was the real canary a few years back and we would think its only a matter of time. So will see how well the EU and SNB handle all of this. Anyhow all this action led to a big bond market rally which post UnivofM saw the low in the 5s30Y spread around -7bp and is now trading +14.6bp at 12.2bp!

Source: BrokertTec, CGQ