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This is a re-opening One important thing to remember is that this is not a new issue. It’s a reopening of an existing 10-year note. So it’s really a 9-year, 11-month note. That makes it easier to price and hedge because you can use the existing note, which is trading at 1.5091%. As you can

Results of the $38 billion reopening WI at 1.520% vs 1.515% on the bid/offer ahead of the sale 1.5143% was the yield in the same issue ahead of the sale Bid to cover 2.38 Prior bid to cover was 2.37 There was a pretty big bid in bonds ahead of the sale and the yield

Monthly budget data Feb 2020 was $265B Fiscal year to date deficit $1047B vs $624B in 2020 Outlays $559B vs $423B a year ago Receipts $248B vs $188B a year ago This is worse than it looks because of changes in the timing of tax filing and refunds. That would probably add $45B. All that

Biden gets his stimulus plan All along, the betting was that it would be watered down or struggle but Democrats got it done. Time will tell if it was the right amount or an inflationary time bomb. The vote in the House is ongoing but there are enough yea votes for it to pass. Biden

Onto the next one Fox Business reports that Biden’s infrastructure plan could be as high as $2.5 billion over four years. The next bill is going to be a fight in Congress with some top Democrats wanting it to be bi-partisan. There is some real interest on the Republican side though, so it could happen.

Dow 30 stocks up 1.62% The Dow industrial average is trading up over 500 points or 1.63% at 32351 after the $1.9 trillion Covid relief bill was passed. Pres. Biden will be signing it shortly.  The high for the index reached 32362.15 so far today. The biggest gainer in the Dow 30 is Boeing and up 6.13%.

2145 GMT New Zealand Food Price (inflation) for February  prior +1.3% m/m 2350 GMT Japan PPI for February  expected 0.5%, prior 0.4% m/m expected -0.7%, prior -1.6% y/y Producer Price Index is inflation at a business-to-business level (in a nutshell). It is also known as the Corporate Goods Price Index, which is probably a better

Meme stock insanity continues S&P 500 +23 points to 3899, +0.6% DJIA +1.4% Nasdaq -0.1% Russell 2000 +1.8% There were some big swings in sentiment throughout the day. The the low CPI number calmed nerves and then decent 10-year auction also helped. The ‘two markets’ theme I’ve been highlighting was particularly noticeable today as broad

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do

Not FX but it does highlight still tensions between China and the US. ‘Egregious’ is a high bar, this from a handy guide to synonyms:   So, it appears run-of-the-mill human rights violations will be AOK with the US, just not the nasty ones.  Invest in yourself. See our forex education hub.

Closing changes for the main markets: S&P 500 down 12 points to 3841 (-0.3%) DJIA -0.6% Nasdaq +0.1% Russell 2000 +1.2% That’s a strange dynamic. It was neither tech nor large caps leading but small caps managed to clock a big gain. On the week: S&P 500 +1.2% DJIA 0.0% Nasdaq +3.3% Russell 2000 +2.1%

Forex news for New York trade on Markets: Gold down $15 to $1854 US 10-year yields down 2 bps to 1.85% S&P 500 down 12 points to 3841 WTI crude down $1 to $52.14 Euro leads, CAD lags The extremely strong manufacturing and services PMIs from Markit were a reminder that the US economy continues

The Senate must commence proceedings when it receives them The Senate is going to hold a trial to impeach Trump and could vote to ban him from running for office again. It takes a two-thirds majority to impeach. The saga could set off a civil war within the Republican party. For bank trade ideas, check

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do

Some key levels in play Below are a list of the option expires for the NY cut. EURUSD.  Current price 1.2109 1.2000 €1.7 billion 1.2100 €572 million USDJPY.  Current price 103.63 103.25.  $940 million 103.50.  $900 million 103.65.  $602 million 103.75. $552 million 104.00. $816 million 104.25. $595 million AUDUSD.  Current price 0.7751 0.7750.  AU$721 million Upcoming notable strikes 0.7650. AU$1.4 billion on January 25 USDCAD.   Current price 1.2623

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do

If you are planning on taking in proceedings, the timings: 11.15am Washingtom time (1615GMT) .. the inauguration ceremony begins 11.30am (1630GMT) Kamala Harris will be sworn in as Vice President 12.00pm (1700GMT) Joe Biden will be sworn-in as President, he is then expected to deliver an address that’ll go for around 30 minutes. Is Biden