US Treasuries Up, US Dollar Up

Posted by: : Paul EbelingPosted on: January 15, 2015 US Treasuries Up, US Dollar Up
 
US Treasuries Up, US Dollar Up
10-Yr: +23/32..1.777%.. USD/JPY: 116.70.. EUR/USD:1.1600

Afternoon Update

US Treasury Complex

2Y +02/32 at 100 09/32

3Y +06/32 at 100 09/32

5Y +13/32 at 101 26/32

7Y +17/32 at 103 25/32

10Y: +23/32 at 104 06/32

30Y +1 11/32 at 112 15/32

 

US Dollar Index

EUR/USD -190 pips at 1.1600

GBP/USD -80 pips at 1.5150

USD/CHF -1275 pips at .8905

USD/JPY -60 pips at 116.70

AUD/USD +60 pips at .8210

USD/CAD -20 pips at 1.1925

 

Commentary

.DXY held small gains as trade test resistance at 92.30 in volatile.

  • EUR/USD is -170 pips at 1.1620 as trade sees with its worst close in 11 yrs. Euro pressured in response to Thursday’s developments at the Swiss National Bank, which has signaled a European-style QE program is coming at next week’s meeting.
  • GBP/USD is -45 pips at 1.5185 after giving up its early gainers. The 1.5000 region remains in focus with a breakdown pushing Cable to marks last seen in June 2010.
  • USD/CHF is -1340 pips at .8845 The Swiss National Bank stunned markets by removing its EUR/CHF 1.20 floor and cutting its Libor Rate -50bpts to -75bpts.
  • USD/JPY is -85 pips at 116.45 as sellers remain in control for a 5th day running. The pair has been offered throughout the day despite the overnight core machinery orders miss and a reiteration by the Bank of Japan that it will do what’s necessary to hit its 2% inflation target. Many participants have taken note of the Nikkei report that came out during US trade, which indicated some members of the BOJ are questioning the benefits of further easing. A breakdown of 116.00 puts the 100-Day MA 113.31 in focus. Japan’s tertiary industry activity is scheduled for release tonight
US Treasury yields at session lows, trading near session highs.
  • The US Treasury complex gave up its early gains following the PPI numbers, but moved towards session highs as stocks markets came under pressure.
  • An aggressive bid in the belly of the curve has the 5Y -6bpts at 1.243%. Buying in 14 of the past 15 sessions has the yield -55bpts from the late Dec highs.
  • The 10Y trades -4.8bps @ 1.789%. The benchmark yield now holds just 40bps from its all-time low.
  • The long end lags as the 30Y holds -2.7bpts at 2.424%. The yield on the Long bond has yet to push through Wednesday’s low at 2.395%.
  • An unch curve has the 2-10-yr spread at 135.5bpts.

Stay tuned…

HeffX-LTN

Paul Ebeling

 

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.


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