|10-Year: +12/32....%.... GNMAs: .... USD/JPY: 105.11.... EUR/USD: 1.1188|
-- Growing concern that China will crack down on protests in Hong Kong boosts safe haven assets
-- 14:00 ET: July Treasury Budget (actual -$119.7 bln; Briefing.com consensus -$100.0 bln; prior -$76.9 bln)
Climbing Once Again
- U.S. Treasuries are on track for a firmly higher start to the week. The early gains come despite a fairly quiet overnight session, which saw an advance in Chinese equities and a slip in Hong Kong's Hang Seng. There were continued protests at the Hong Kong International Airport, prompting a suspension of flights in the afternoon. Reports of Chinese police officers gathering in Shenzhen led to continued concerns that China may crack down on protests. Treasury futures accelerated their advance during the European session, hitting highs during the last 30 minutes. The U.S. Dollar Index is little changed at 97.52.
- Yield Check:
- 2-yr: -4 bps to 1.59%
- 3-yr: -4 bps to 1.57%
- 5-yr: -4 bps to 1.52%
- 10-yr: -5 bps to 1.68%
- 30-yr: -5 bps to 2.20%
- The People's Bank of China fixed the yuan at 7.0211 per dollar, down from the previous fix of 7.0136.
- China's July New Loans totaled CNY1.06 trln (expected CNY1.275 trln; last CNY1.66 trln) while Outstanding Loans grew 12.6% yr/yr (expected 12.8%; last 13.0%). July M2 Money Stock increased 8.1% yr/yr (expected 8.5%; last 8.5%).
- New Zealand's July Electronic Card Retail Sales decreased 0.1% m/m (expected 0.0%; last 0.0%) but grew 1.6% yr/yr (expected 2.2%; last 1.1%).
- The Italian parliament is expected to schedule a confidence vote that is likely to lead to a dissolution of the current government. Deputy Prime Minister, Matteo Salvini, said he will cut taxes if Lega wins the election.
- Fitch affirmed Italy's BBB rating with a Negative outlook.
- WTI Crude: -1.0% to $53.96/bbl
- Gold: +0.7% to $1518.40/ozt
- Copper: UNCH at $2.59/lb
- EUR/USD: -0.1% to 1.1188
- GBP/USD: +0.4% to 1.2085
- USD/CNH: +0.1% to 7.1000
- USD/JPY: -0.5% to 105.11
- Data out Today:
- 14:00 ET: July Treasury Budget (Briefing.com consensus -$100.0 bln; prior -$76.9 bln)