25 Jun 2013
Flash: Market Sentiment Fragile – TD Securities
FXstreet.com (London) - Alvin Pontoh at TD Securities, FX & Rates Strategy said that market sentiment continues to be fragile, still on the seemingly perpetual fear of early Fed tapering, compounded with on-going worries over the recent Chinese liquidity crunch, which has now escalated into concerns about growth.
He noted that the CNY 1yr swap has declined -11bp to 4.12%, the third consecutive fall since reaching a peak of 4.58% last Thursday, as the PBC reportedly refrained from conducting bill sales. Otherwise, he said, the bond market sell off is starting to reverse, with US Treasury 10yr yields down about ~4bp from yesterday’s close (now 2.492%) and Asian rates markets finding some support after aggressive selling in recent days.
He noted that the CNY 1yr swap has declined -11bp to 4.12%, the third consecutive fall since reaching a peak of 4.58% last Thursday, as the PBC reportedly refrained from conducting bill sales. Otherwise, he said, the bond market sell off is starting to reverse, with US Treasury 10yr yields down about ~4bp from yesterday’s close (now 2.492%) and Asian rates markets finding some support after aggressive selling in recent days.