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15 Dec 2014
Treasuries benefit amid risk-off in broader markets – DB
FXStreet (Barcelona) - The Deutsche Bank Team notes that the recent risk-off tone in broader markets benefited treasuries the most, with the 10y yield falling to June 2012 levels at 2.082%.
Key Quotes
“Treasuries were the ultimate beneficiary amid a risk-off tone in broader markets. The 10y yield fell 8bps lower to 2.082%, a level that was last seen in June 2012. Data took a back seat on Friday in terms of driving the macro moves although the first reading of the December University of Michigan Confidence print was encouraging with the 93.8 level well ahead of market consensus (89.5) – the highest level since January 2007.”
“Lower energy prices weighed on the PPI reading, with the headline print declining 0.2% mom for November although the core print was largely stable with the annualized rate unchanged at +1.8% yoy.”
“The bounce in Oil is one of the more notable moves overnight. The commodity appears to have rebounded around 0.7-1.0% off Friday's close this morning to retrace some of Friday’s losses. Brent and WTI are currently $62.53/bbl and $58.23/bbl as we head to print.”
“The market appears to have shrugged off a bearish report over the weekend from the UAE energy minister who was quoted on Bloomberg saying that OPEC will continue to keep output at current levels, even if prices fell as low as $40 a barrel. The minister also suggested that the cartel would wait for at least three months to consider another emergency meeting.”
Key Quotes
“Treasuries were the ultimate beneficiary amid a risk-off tone in broader markets. The 10y yield fell 8bps lower to 2.082%, a level that was last seen in June 2012. Data took a back seat on Friday in terms of driving the macro moves although the first reading of the December University of Michigan Confidence print was encouraging with the 93.8 level well ahead of market consensus (89.5) – the highest level since January 2007.”
“Lower energy prices weighed on the PPI reading, with the headline print declining 0.2% mom for November although the core print was largely stable with the annualized rate unchanged at +1.8% yoy.”
“The bounce in Oil is one of the more notable moves overnight. The commodity appears to have rebounded around 0.7-1.0% off Friday's close this morning to retrace some of Friday’s losses. Brent and WTI are currently $62.53/bbl and $58.23/bbl as we head to print.”
“The market appears to have shrugged off a bearish report over the weekend from the UAE energy minister who was quoted on Bloomberg saying that OPEC will continue to keep output at current levels, even if prices fell as low as $40 a barrel. The minister also suggested that the cartel would wait for at least three months to consider another emergency meeting.”