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India

Gertrude Chavez-Dreyfuss

Amid pandemic, crypto crime surges in first 5 months: CipherTrace

02 Jun 2020

NEW YORK Crypto intelligence company CipherTrace, which started tracking cryptocurrency crime a few years ago, said it has started to see coronavirus-related frauds that require some form of digital currency payment.

TREASURIES-Yields fall as Hong Kong tension drives investors to safety

23 May 2020

NEW YORK, May 22 Longer-dated U.S. Treasury yields fell on Friday, as risk sentiment turned sour after Beijing proposed imposing a new security law on Hong Kong, exacerbating China's strained relationship with the United States.

TREASURIES-U.S. yields falter as Hong Kong tension weighs

22 May 2020

By Gertrude Chavez-Dreyfuss NEW YORK, May 22 U.S. Treasury yields fell on Friday, as risk sentiment turned sour after Beijing proposed imposing a new security law on Hong Kong, exacerbating China's strained relationship with the United States. U.S. 10-year and 30-year yields slid to one-week lows, while the yield curve flattened for a fourth straight session. China's overnight announcement about the security law in Hong Kong, following last year's pro-democracy rallies, drew a stern reaction from the Washington. U.S. Secretary of State Mike Pompeo condemned the proposal as arbitrary and said it could affect the favorable U.S. treatment of the territory. He said the United States stands with the people of Hong Kong. "The markets are now paying close attention to some of the pre-coronavirus activity or headlines such as those related to Hong Kong and China, and now that's weighing on the market a little bit in terms of pushing yields lower," said Jim Barnes, director of fixed income at Bryn Mawr Trust in Devon, Pennsylvania. In late morning trading, U.S. 10-year yields fell to 0.660% from 0.677% late on Thursday, after earlier falling to a one-week low of 0.627%. Yields on U.S. 30-year bonds were at 1.373%, down from up from 1.398% on Thursday. Earlier, 30-year yields dropped to a one-week trough of 1.329%. U.S. 20-year bond yields were also lower at 1.311% . On the short end of the curve, U.S. two-year yields were last at 0.163%, down from Thursday's 0.167%. The yield curve flattened some more on Friday, with the spread between the 10-year and two-year narrowing to 49.30 basis points. Overall, traders expected Treasuries to remain rangebound for awhile, absent a vaccine or treatment for the novel coronavirus. "The technical profile in the U.S. rates market offers very little to inspire one to expect a defining trading session anytime soon," said BMO Capital in a research note. "This brings us well into June at this point and the prospects for a breakout dwindle the longer 10s remain stubbornly between 54 basis points and 78 basis points." May 22 Friday 10:55 AM New York / 1455 GMT Price Current Net Yield % Change (bps) Three-month bills 0.12 0.122 0.000 Six-month bills 0.1525 0.1547 0.008 Two-year note 99-237/256 0.1635 -0.003 Three-year note 99-196/256 0.2042 -0.008 Five-year note 100-60/256 0.327 -0.011 Seven-year note 99-248/256 0.5046 -0.013 10-year note 99-176/256 0.6574 -0.020 30-year bond 96-240/256 1.375 -0.023 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 9.00 0.50 spread U.S. 3-year dollar swap 6.00 0.50 spread U.S. 5-year dollar swap 3.50 0.50 spread U.S. 10-year dollar swap -0.75 0.75 spread U.S. 30-year dollar swap -45.50 1.25 spread (Reporting by Gertrude Chavez-Dreyfuss)

TREASURIES-U.S. long-dated prices inch up as market digests supply

22 May 2020

* U.S. Treasury announces 2-year, 5-year, 7-year auctions * U.S. TIPS auction show mixed results * U.S. yield curve flatter going into month-end (Adds new comment, updates prices) By Gertrude Chavez-Dreyfuss NEW YORK, May 21 U.S. long-dated Treasury prices inched higher on Thursday in choppy trading, as investors were relieved that the flood of debt supply from the government to finance its stimulus programs was absorbed in the market fairly smoothly. That said, the front-end of the curve has been under mild pressure amid a record $127 billion in supply for U.S. two-year, five-year, and seven-year notes. "The supply, with additional bills, notes, bonds, has all been well-received overall even though the Federal Reserve has trimmed its purchases," said Justin Lederer, Treasury analyst, at Cantor Fitzgerald in New York. Wednesday's auction of $20 billion of U.S. 20-year bonds, the first such sale since 1986, was considered a success even though the yield came just a little higher than market expectations at the bid deadline. Analysts also said investor buying going into the month-end next week also boosted longer-dated Treasury prices. "People usually buy duration toward the month-end extension so that brings some flattening bias," said Zhiwei Ren, portfolio manager, at Penn Mutual Asset Management in Philadelphia. "I have been seeing a lot of dealers putting on flatteners today because the dealers know that fund managers will come and buy the 30-year to extend duration." The yield curve was flatter on Thursday, with the spread between the 10-year and two-year, as well as the five-year and 30-year, narrowing to 50 basis points, and 105 basis points, respectively. On Thursday, the Treaury sold $12 billion in 10-year TIPS (Treasury Inflation Protected Securities) and the results were mixed. The note was awarded at a yield of -0.47%, compared with -0.51% at the bid deadline, suggesting investors demanded a premium to buy the paper. There was decent demand though from indirect bidders, which include foreign central banks, taking up 62.1% of bids accepted. In afternoon trading, U.S. 10-year yields were at 0.678% from 0.679% late on Wednesday. U.S. 20-year bonds traded at 1.163%, from 1.187% on Wednesday. May 21 Thursday 3:04PM New York / 1904 GMT Price Current Net Yield % Change (bps) Three-month bills 0.1275 0.1297 0.006 Six-month bills 0.145 0.1471 -0.003 Two-year note 99-234/256 0.1694 0.008 Three-year note 99-188/256 0.2144 0.005 Five-year note 100-42/256 0.3415 0.012 Seven-year note 99-220/256 0.5206 0.003 10-year note 99-124/256 0.6785 -0.001 30-year bond 96-100/256 1.3978 0.000 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 8.50 0.00 spread U.S. 3-year dollar swap 5.50 0.25 spread U.S. 5-year dollar swap 3.00 0.00 spread U.S. 10-year dollar swap -1.50 0.50 spread U.S. 30-year dollar swap -46.50 1.25 spread (Reporting by Gertrude Chavez-Dreyfuss; Editing by David Gregorio and Chizu Nomiyama)

TREASURIES-U.S. long-dated prices rise as markets digest debt supply

21 May 2020

By Gertrude Chavez-Dreyfuss NEW YORK, May 21 U.S. long-dated Treasury prices rose on Thursday, as investors were relieved that the flood of debt supply from the government to finance various stimulus programs during the pandemic has been absorbed in the market fairly smoothly. That said, the front-end of the curve has been under mild pressure ahead of the U.S. Treasury's announcement on auction sizes for two-year, five-year, and seven-year notes, as well as the sale of $12 billion in reopened 10-year TIPS. "There's a little bit of relief that we got through the sale of the 10-year, 20-year, and 30-year," said Justin Lederer, Treasury analyst, at Cantor Fitzgerald in New York. "The supply, with additional bills, notes, bonds, has all been well-received overall even though the Federal Reserve has trimmed its purchases." Wednesday's auction of $20 billion in U.S. 20-year bonds, the first such sale since 1986, was considered a success even though the yield came just a little higher than market expectations at the bid deadline. Analysts also said bonds were also well-bid as global equities fell amid growing tension between the United States and China on the origin of the novel coronavirus. U.S. Secretary of State Mike Pompeo rejected on Wednesday President Xi Jinping's claim that Beijing had acted with transparency after the outbreak in China, and said if Xi wanted to show that, he should hold a news conference and allow reporters to ask him anything they liked. In morning trading, U.S. 10-year yields was at 0.678% from 0.679% late on Wednesday. A day after its maiden sale in more than three decades, U.S. 20-year bonds traded at 1.165%, from 1.187% on Wednesday. Yields on U.S. 30-year bonds were at 1.390%, down from 1.398% on Friday. The yield curve flattened on Thursday, with the spread between the 10-year and two-year narrowing to 50 basis points . May 21 Thursday 9:59 AM New York / 1359 GMT Price Current Net Yield % Change (bps) Three-month bills 0.12 0.122 -0.002 Six-month bills 0.14 0.142 -0.008 Two-year note 99-233/256 0.1714 0.010 Three-year note 99-186/256 0.2171 0.008 Five-year note 100-44/256 0.3399 0.010 Seven-year note 99-224/256 0.5184 0.000 10-year note 99-140/256 0.672 -0.007 30-year bond 96-184/256 1.3841 -0.014 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 8.25 -0.25 spread U.S. 3-year dollar swap 5.25 0.00 spread U.S. 5-year dollar swap 3.00 0.00 spread U.S. 10-year dollar swap -1.50 0.50 spread U.S. 30-year dollar swap -46.75 1.00 spread (Reporting by Gertrude Chavez-Dreyfuss; Editing by David Gregorio)

Investors seen queuing up for new U.S. 20-year bonds, backstopped by Fed

19 May 2020

NEW YORK Investors are likely to snap up 20-year bonds when the U.S. Treasury sells them on Wednesday for the first time in more than three decades, pulling out all the financing stops to mitigate the economic havoc from the coronavirus pandemic.

TREASURIES-U.S. yields surge on hopes about coronavirus vaccine

19 May 2020

* U.S. 30-year yields rise to 8-week high * U.S. 10-year yields climb to 2-week peak * U.S yield curve steepest in 2 months * Moderna vaccine news helps lift sentiment * Focus on U.S. 20-year bonds (Adds new comments, 20-year bond outlook, updates prices) By Gertrude Chavez-Dreyfuss NEW YORK, May 18 U.S. Treasury yields advanced on Monday, as investors grew optimistic about a potential vaccine that could help fight the coronavirus pandemic, boosting overall risk appetite as stocks and oil gained as well. The upcoming supply of U.S. 20-year bonds also weighed on long-dated Treasury prices. U.S. 30-year yields climbed to eight-week peaks, while those on the 10-year rose to two-week highs, and the two-year advanced to a one-week peak. The rise in long-dated yields steepened the yield curve to its widest spread in two months. "Positive news like the vaccine (news) is really taking a lot of the momentum out of the Treasury market," said Justin Hoogendoorn, head of fixed income strategy for Piper Jaffray. Moderna Inc said on Monday its experimental COVID-19 vaccine showed promise in a small early-stage trial, with the vaccine producing virus-neutralizing antibodies similar to those found in recovered patients. No approved treatment or vaccine is available for COVID-19, the pulmonary disease caused by the novel coronavirus, and experts predict a safe and effective vaccine could take 12-18 months to develop. U.S. President Donald Trump on Friday expressed hope a vaccine would be in place before the end of the year, and said his administration would mobilize its forces to get a vaccine distributed. [nL1N2CX1NF In afternoon trading, U.S. 10-year yields rose to 0.735% from 0.64% late on Friday, after rising earlier to 0.744%, a two-week high. Yields on U.S. 30-year bonds were at 1.445%, up from 1.32% on Friday. Earlier, 30-year yields rose to 1.46%, the highest since late March. On the short end of the curve, U.S. two-year yields were last at 0.181%, up from Friday's 0.149%, hitting a one-week high earlier of 0.185%. The yield curve steepened for a second straight day on Monday, with the spread between the 10-year and two-year widening to as much as nearly 56 basis points, the widest spread since March 20. On Friday, that gap was at 49.60 basis points on Friday. The curve has steepened since the beginning of the pandemic, as investors have piled into short-term debt, having ruled out rate hikes in the immediate future. Investors are also bracing for the $20 billion U.S. 20-year bond auction on Wednesday. The last time a 20-year bond was sold was more than three decades ago. "The Fed will be in, buying and taking out some of the supply will be helpful for the 20 year auction," said Piper Jaffray's Hoogendoorn. "It will naturally create more demand." The Federal Reserve has bought $1.5 trillion in Treasuries since the middle of March, but has tapered its purchases this week to an average of $6 billion per day, from $7 billion the previous week. May 18 Monday 3:17 PM New York/1917 GMT Price Current Net Yield % Change (bps) Three-month bills 0.1175 0.1195 -0.005 Six-month bills 0.15 0.1522 0.000 Two-year note 99-228/256 0.1813 0.032 Three-year note 99-170/256 0.2378 0.050 Five-year note 100 0.375 0.067 Seven-year note 99-136/256 0.5689 0.083 10-year note 98-240/256 0.7355 0.095 30-year bond 95-68/256 1.4451 0.125 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 9.00 -0.75 spread U.S. 3-year dollar swap 5.00 -1.25 spread U.S. 5-year dollar swap 3.25 -0.50 spread U.S. 10-year dollar swap -2.25 0.00 spread U.S. 30-year dollar swap -47.75 -0.50 spread (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Ross Kerber in Boston; Editing by Richard Chang and Nick Zieminski)

TREASURIES-U.S. yields rise on optimism about coronavirus vaccine

18 May 2020

By Gertrude Chavez-Dreyfuss NEW YORK, May 18 U.S. Treasury yields rose on Monday, as investors grew optimistic about a potential vaccine that could help fight the coronavirus pandemic, boosting overall risk appetite as stocks and oil gained. The upcoming supply of U.S. 20-year bonds also weighed on long-dated Treasury prices. U.S. two-year, 10-year, and 30-year yields climbed to one-week highs, while the yield curve steepened. "We're having a sell-off in Treasuries because on the macro front here, we have more good news on the coronavirus," said Stan Shipley, fixed-income strategist, at Evercore ISI in New York. "Death count is going down, and the new cases are coming down as well and there is some positive news on the vaccine," he added. Moderna Inc said on Monday its experimental COVID-19 vaccine showed promise in a small early-stage trial, with the vaccine producing virus-neutralizing antibodies similar to those found in recovered patients. No approved treatment or vaccine is available for COVID-19, the pulmonary disease caused by the novel coronavirus, and experts predict a safe and effective vaccine could take 12-18 months to develop. U.S. President Donald Trump on Friday expressed hope that a vaccine would be in place before the end of the year, and said his administration would mobilize its forces to get a vaccine distributed. [nL1N2CX1NF In late morning trading, U.S. 10-year yields rose to 0.688% from 0.64% late on Friday, after rising earlier to 0.692%, a one-week high. Yields on U.S. 30-year bonds were at 1.395%, up from 1.32% on Friday. Earlier, 30-year yields rose to a one-week peak of 1.401%. On the short end of the curve, U.S. two-year yields were last at 0.177%, up from Friday's 0.149%, hitting a one-week high as well of 0.179%. The yield curve steepened for a second straight day on Monday, with the spread between the 10-year and two-year widening to as much 52.4 basis points, from 49.60 basis points on Friday. The curve has steepened since the beginning of the pandemic, as investors have piled into short-term debt, having ruled out rate hikes in the immediate future. Investors are also bracing for the $20 billion U.S. 20-year bond auction on Wednesday. The last time a 20-year bond was sold was more than three decades ago. May 18 Monday 11:02AM New York / 1502 GMT Price Current Net Yield % Change (bps) Three-month bills 0.12 0.122 -0.002 Six-month bills 0.155 0.1573 0.005 Two-year note 99-229/256 0.1793 0.030 Three-year note 99-182/256 0.2221 0.034 Five-year note 100-32/256 0.3495 0.042 Seven-year note 99-192/256 0.5367 0.051 10-year note 99-72/256 0.6996 0.060 30-year bond 96-40/256 1.4076 0.088 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 9.00 -0.75 spread U.S. 3-year dollar swap 5.50 -0.75 spread U.S. 5-year dollar swap 3.50 -0.25 spread U.S. 10-year dollar swap -2.25 0.00 spread U.S. 30-year dollar swap -47.50 -0.25 spread (Reporting by Gertrude Chavez-Dreyfuss; Editing by Richard Chang)

U.S. Treasuries saw record foreign selling in March: data

16 May 2020

NEW YORK Foreign investors sold a record amount of U.S. Treasury bonds and notes for the month of March, according to Treasury Department data on Friday, as the coronavirus pandemic caused a dislocation in the market that saw liquidity all but dry up.

Dollar hits three-week high, shrugging off grim U.S. data

15 May 2020

NEW YORK The dollar rose to a three-week high on Thursday as traders overlooked another week of roughly 3 million new jobless claims, evidence of a second wave of coronavirus-related lay-offs.

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