US Treasuries open NY higher. In TOKYO treasuries rose in catchup after US holiday to Wed European “risk-off” trade after weak German services PMI. Prices gained from getgo, as buying occurred in longer-end Tsys. Buying came from Asian names after initial markeup, with Japanese names active esp in 10Ys. Japanese banks moved from 5-yr notes out to 10-yr notes. Some mild Asian central bank selling arose in front end coupon Tsys. In LONDON – tsys gained but flows modest ahead of key ECB/BOE policy meetings. Some US players seen extending holiday, while US June Jobs data Friday also capped volume. China cut its benchmark interest rates. BOE said raised QE STG50B at July meeting. ECB cuts refi rate 25 bps to 0.75%, as expected; cuts deposit rate to 0%. All await 7:30am ET ECB Draghi news conf for policy clues. Tsys saw primary dealers and fast money trading, but also US account selling 30Y bonds, while banks sold 2-year and 5-year notes.
EasyForexNews Research Team