19 Jan 2015
US Treasuries hit by profit taking ahead of long weekend – KBC
FXStreet (Barcelona) - The KBC Bank Research Team comments that US bond markets took a hit after investors took to profit-booking before the long weekend amidst risk-on sentiments.
Key Quotes
“On Friday, calm gradually returned to global markets following the turmoil after the Swiss major FX decision on Thursday. So the initial Bund gains gradually eroded, while the US Note future stabilized around opening highs during European morning trading. In the afternoon session, sentiment even turned risk-on.“
“The US data were constructive (low core CPI data in EMU and US were ignored, while Michigan consumer sentiment surged). US equities trended higher and oil kept its gains.”
“US bond markets performed exceptionally in previous days and investors took some chips from the table ahead of the long weekend and amid risk-on sentiment.”
"The US curve shifted higher with the belly underperforming. Yields increased by 7.1 bps (2-yr) to 14.1 bps (5-yr).”
“In the German market, yields still fell by up to 2 bps, but the Bund future closed at opening levels.”
Key Quotes
“On Friday, calm gradually returned to global markets following the turmoil after the Swiss major FX decision on Thursday. So the initial Bund gains gradually eroded, while the US Note future stabilized around opening highs during European morning trading. In the afternoon session, sentiment even turned risk-on.“
“The US data were constructive (low core CPI data in EMU and US were ignored, while Michigan consumer sentiment surged). US equities trended higher and oil kept its gains.”
“US bond markets performed exceptionally in previous days and investors took some chips from the table ahead of the long weekend and amid risk-on sentiment.”
"The US curve shifted higher with the belly underperforming. Yields increased by 7.1 bps (2-yr) to 14.1 bps (5-yr).”
“In the German market, yields still fell by up to 2 bps, but the Bund future closed at opening levels.”