Important economic data will be released soon, and the market trend is stable🙃
Except for China, the market is relatively calm. The UK was closed yesterday, and the US market will also be closed on Labor Day next Monday. The market continued its trend after the Jackson Hole, with the US stock market rising 0.5-1%, and with the 2-year and 5-year bond auctions As expected, the overall yield curve softened by about 3 basis points.
Although there are some important economic data to be released this week, such as JOLTS / PCE / ISM / NFP, the price of the 10-year futures straddle strategy this Friday is relatively low, only slightly more than 54 ticks, which is lower than this year’s non-farm payrolls The average of 68 ticks in the data release week (source: Citi) shows that the market is more confident in current interest rate pricing (pricing reflects a 20% chance of the Federal Reserve raising interest rates); in addition, the 2-year bond has exceeded 5% for the first time since 2006. The coupon rate, no doubt generating some buying interest, savers haven't seen yields at this level in a long time.