Today’s Market Update

Treasuries Steady, Futures Volumes Remain Low; Gilts, Bunds Lag
2019-03-19 11:26:33.675 GMT

By Edward Bolingbroke
(Bloomberg) — Treasuries are little changed after paring
gains accumulated during Asian hours and European morning; Asia-
session advance followed bigger rally in Australian government
bonds sparked by dovish RBA minutes. Gilts, bunds slightly lag
Treasuries with Brexit risk still central.
* Futures volumes remain poor ahead of Wednesday’s FOMC rate
decision; 10-year contract volume was 60% of recent average as
of 7am
* Treasury yields erased declines of 1bp-2bp; 10-year was flat
at 2.603% with gilts, bunds cheaper by ~1bp
** Gilt futures reached lows of the day heading into early U.S.
session after EU leaders were said to plan contingent offer on
Brexit extension; cable climbed to session high above 1.33
* Asia session saw UST futures edge higher following wider gains
across ACGBs; RBA minutes included detailed discussion of
operations in “repurchase and foreign exchange swap markets”
* IG credit dollar issuance slate includes RBS 6NC5 Fxd-to-FRN
and Nordea Bank Perp-NC7 AT1
* U.S. economic data calendar includes January factory orders
and final reading of durable goods orders at 10am; FOMC rate
decision is due Wednesday
* Treasury supply is limited to $11b 10-year TIPS reopening on
Thursday

To contact the reporter on this story:
Edward Bolingbroke in New York at ebolingbrok1@bloomberg.net
To contact the editors responsible for this story:
Benjamin Purvis at bpurvis@bloomberg.net
Elizabeth Stanton

Treasury Yields

Term  Current  Last Month
3 Month2.464%2.435%
6 Month2.506%2.494%
2 Year2.456%2.498%
5 Year2.409%2.468%
10 Year2.594%2.645%
30 Year3.009%2.995%
Yields updated each morning.
Source: Bloomberg

Benchmarks

PRIME5.50%
DJIA25,887.38
Crude Oil$58.63
YEN111.50
Gold$1,308.65
1 Year CMT2.49%
1 Month LIBOR2.48%
Fed Funds Effective2.40%
Next FOMC MeetingMarch 19-20, 2019
Source: Bloomberg

Economic Indicator Calendar

DateEventPeriodSurv (M)ActualPriorRevised
03/18NAHB Housing Market Index Mar 6362
03/19Factory Orders Jan0.3%0.1%0.1%
Factory Orders Ex Trans Jan-0.2%-0.6%-0.5%
Durable Goods Orders Jan 0.4%0.3%0.4%
Durable Goods Ex TransportJan-0.1%-0.2%-0.1%
Cap Goods Orders Nondef Ex A Jan0.8%0.8%0.8%
Cap Goods Ship Nondef Ex Air Jan0.8%0.8%
03/20MBA Mortgage ApplicationsMar 151.6%2.3%
FOMC Rate Decision (Upper)Mar 202.50%2.50%
FOMC Rate Decision (Lower)Mar 202.25%2.25%
Interest Rate on Excess ReserveMar 212.40%2.40%
03/21Philadelphia Fed Business Out Mar 4.6-4.1
Initial Jobless ClaimsMar 16 225k229k
Continuing ClaimsMar 91769k1776k
Bloomberg Consumer ComMar 1760.8
Bloomberg Consumer ExpectationsMar 54.5
Leading Index Feb 0.1%-0.1%0.0%
03/22Markit US Manufacturing PMIMar 53.453.0
Markit US Services PMIMar 55.556.0
Markit US Composite PMIMar 55.5
Wholesale Inventories MoMJan0.1%1.1%
Wholesale Trade Sales MoMJan-1.0%
Existing Home Sales Feb 5.10m4.94m
Existing Home Sales MoMFeb3.2%-1.2%
Monthly Budget Statement Feb -$227.0b$8.7b
Source: Bloomberg