Relatively high volume trade overnight sees follow through to new yield lows, as the Trump disappointment move saw another wave. Subsequent consolidation seen, with heavy equities keeping bond supported into 30yr supply. Auction goes smoothly with solid results, even with the pre-sale richening, though comes significantly off best levels after as equities corrected. Secondary data (claims, import prices) uneventful and ignored. 2s -1.2bps @ 1.17%, 5s -2.3bps @ 1.86%, 10s -1.6bps @ 2.36%, 30s -0.2bps @ 2.95%.
* Agency Spreads: Freddie/Fannie 5s -0.1/0.0 bps, 10s -1.6/-0.3 bps.
* Swap Spreads: 2s -0.17bps, 5s +0.30bps, 10s +0.13bps.
The roll back lower seen after the Trump disappointment extended with S&P testing the recent inner range floor, though the market came well off the lows in afternoon trade. The S&P closed -0.21%, financials dragged by drop back in yields and ahead of earnings reports Friday, kicking off earnings season.
To Be Released -
21:45 GMT - NZ: Retail Card Spending (Dec) % m/m (Mkt: 1 Prev: -0.1)
05:30 GMT - NL: Retail Trade (Oct) % y/y (Prev: 1.1)
07:00 GMT - DE: Wholesale Price Index (Dec) % m/m (Prev: 0.1)
07:00 GMT - DE: Wholesale Price Index (Dec) % y/y (Prev: 0.8)
07:00 GMT - FI: CPI (Dec) % m/m (Prev: 0)
07:00 GMT - FI: CPI (Dec) % y/y (Prev: 0.7)
08:00 GMT - ES: CPI (Dec) % m/m (Mkt: 0.6 Prev: 0.6)
08:00 GMT - ES: CPI (Dec) % y/y (Mkt: 1.5 Prev: 1.5)
08:00 GMT - ES: HICP (Dec) % m/m (Mkt: 0.5 Prev: 0.5)
08:00 GMT - ES: HICP (Dec) % y/y (Mkt: 1.4 Prev: 1.4)
13:30 GMT - US: PPI (Dec) 4cast: 0.2% m/m (Mkt: 0.3 Prev: 0.4)
13:30 GMT - US: PPI (ex Food & Energy) (Dec) 4cast: 0.1% m/m (Mkt: 0.1 Prev: 0.4)
13:30 GMT - US: Retail Sales (Dec) 4cast: 0.7% m/m (Mkt: 0.7 Prev: 0.1)
13:30 GMT - US: Retail Sales (ex Auto) (Dec) 4cast: 0.5% m/m (Mkt: 0.5 Prev: 0.2)
15:00 GMT - US: Business inventories (Nov) % m/m (Mkt: 0.6 Prev: -0.2)
15:00 GMT - US: Univ of Mich Sent. (Prelim) (Jan) (Mkt: 98.5 Prev: 98.2)
19:00 GMT - US: Budget (Dec) USD bn (Mkt: -26 Prev: -136.7)
Events & Auctions:
22:30 GMT - US: Fed's Yellen Speaks in Washington
22:45 GMT - NO: Norges' Nicolaisen Speaks in Oslo
00:00 GMT - US: Fed's Yellen Addresses Town Hall With Educators
09:30 GMT - UK: BoE's Saunders Speaks in London
11:00 GMT - UK: 182day bills auction - GBP 2.50 Bn (Act)
11:00 GMT - UK: 28day bills auction - GBP 0.50 Bn (Act)
11:00 GMT - UK: 92day bills auction - GBP 2.00 Bn (Act)
11:00 GMT - SE: Riksbank's Ohlsson Speaks in Stockholm
14:30 GMT - US: Fed's Harker Speaks in Philadelphia