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2026-09-17 18:44:09
[Fall in Oil Prices, Driving a Slight Rebound in US Treasuries; Yield Curve Flattens] ⑴ US Treasuries rebounded slightly in active overnight trading, further flattening the yield curve, with good trading volume for the 10-year contract. ⑵ The September contract fluctuated between 105-21.5 and 106-02, last quoted around 105-29.5. ⑶ A large transaction occurred in the London morning session, involving approximately 4,200 lots of 10-year Treasury bonds, hedging approximately 1,600 lots of ultra-long-term Treasury bonds. ⑷ Traders said that macro accounts were particularly active on the curve, mainly steepening operations between the mid- and long-term ends. ⑸ A London trader stated that the market lacked confident buying, with 10-year Treasury futures only slightly higher than the settlement price, while WTI crude oil fell by more than $2, declining for the second consecutive trading day. (6) The S&P 500 performed strongly, rising about 60 points, or about 1%. The Euro Stoxx 50 rose about 1%, following a 0.3% increase in the Nikkei 225. The CSI 300 fell about 1%. (7) German government bonds were weak, mainly reflecting a sell-off in Europe following Wednesday's Fed meeting. German bonds fell nearly 0.25 basis points from the settlement price, and the spread between 10-year US Treasury yields and German bonds widened by about 1.5 basis points to about 146 basis points from the European close. (8) The US dollar gave back some of the gains it had made on Wednesday, boosted by the Fed. The dollar index fell back to around 100.16, the yen strengthened to around 155.62 yen per dollar, the euro and pound sterling strengthened slightly, and gold prices rebounded to around $4,313.75 per ounce.
