News Results

  1. BULLET: US MBS: Agy MBS strategy team at Citi is moving to...
    Market News Intl Fixed Income Bullets | 02/05/16 03:54 PM EST

    US MBS: Agy MBS strategy team at Citi is moving to a neutral stance on MBS as 10-year Treasury yields are hovering around 1.85%. "Origination is expected to increase at these rate levels and real money buying will likely subside. We also expect a 24% decline in Fed's reinvestment purchases," it said. Although MBS will come under pressure if rates rally further, we think the sector is cheap for investors with a 3 to 6 month horizon. The rally in rates has pushed down yield bogeys and further pushed out the risk to a taper in the reinvestment program. IG spreads are looking attractive but the impending downgrades in the sector will continue to incentivize money managers to own MBS," Citi said.

  2. BULLET: US TSYS: FTN's JIm Vogel said that there are.........
    Market News Intl Fixed Income Bullets | 02/05/16 03:50 PM EST

    US TSYS: FTN's JIm Vogel said that there are "uncertainties" in "the next three weeks, including Yellen next week in front of Congress," with her semi-annual economic testimony, and "with less interference from stocks, bonds are giving a clearer picture of what they really feel about the US economy. The big drop in real interest rates tells the story."

  3. BULLET: US TSYS: Commodity Futures Trading...................
    Market News Intl Fixed Income Bullets | 02/05/16 03:47 PM EST

    US TSYS: Commodity Futures Trading Commission/Commitment of Traders data for the period ending February 2 details: the latest report showed large speculative accounts added shorts/pared longs in Fed funds, Eurodollars, 5- and 10-year notes, while paring shorts or adding longs in 2-year notes, 30-year Bond and the Ultra-bond. In the short end, the group reversed a small long in Fed funds from +1,121 in the prior read to finish -62,786 (-63,907 net) and added to net shorts in Eurodollars by -77,292 to finish -250,693. In notes, the group pared net shorts in the 2-year note by +56,759 to -62,998, and added net shorts in the 5-year note by -56,028 to finish -302,924. The group pared net long in the 10-year note by -38,688 to finish +5,853. In the long end, the group added to net longs in the 30-year Bond by +6,917 to +11,291, and pared shorts in the Ultra-bond by +1,957 to -86,446.

  4. BULLET: OUTLOOK: US Event Cal for Mon- 08-10 Feb Fed, bank...
    Market News Intl Fixed Income Bullets | 02/05/16 03:45 PM EST

    OUTLOOK: US Event Cal for Mon- 08-10 Feb Fed, bank regulator community reinv conference, LA CA 08-Feb 11am UST announces 4wk 08-Feb 1130am UST auctions 3/6m

  5. BULLET: US TSYS: FTN Financial's Jim Vogel said that as......
    Market News Intl Fixed Income Bullets | 02/05/16 03:40 PM EST

    US TSYS: FTN Financial's Jim Vogel said that as financial "markets remain perplexing, here's a (somewhat) helpful thought. Most of the current themes that plague equities and commodities have been in place for quite some time. Everyone was aware of China, the potential for lower oil prices, etc. since the second quarter of last year. Investors were able to look past them because 2016 growth was going to provide a gradual resolution for those thorny issues. Plus, there would be plenty of US growth to allow the Fed to nudge rates higher." But he said that "now, in addition to still flattish global activity and more than a hint of currency wars, investors have to grapple with US growth that at best is substandard. Despite good news on wage growth in January, ISM weakness is troubling. Result: 10-yr UST at 1.85%."

  6. BULLET: US TSYS SUMMARY: Pt II: 1) Tsys bought in............
    Market News Intl Fixed Income Bullets | 02/05/16 03:16 PM EST

    US TSYS SUMMARY: Pt II: 1) Tsys bought in safe-haven bid/vs. sell weak high-yield CDXs; 2) Tsy kept next Tues' $24B 3Y auction unchanged in size but cut $23B 10Y by $1B in size, $15B 30Y by $1B size 3) All await Fed Chr Yellen semi-annual econ testimony on Capital Hill mid-week next week; US Tsys ended Fri 3pm ET vs. 3pm ET Thurs as follows: - The 2-year ended at 0.726% (100-01+) from 0.714% (100-022) - The 3-year ended at 0.901% (100-206) from 0.890% (100-216) - The 5-year ended at 1.252% (100-19) from 1.250% (100-192) - The 7-year ended at 1.584% (101-03) from 1.596% (101-00+) - The 10-year ended at 1.849% (103-18) from 1.865% (103-13+) - The 30-year ended at 2.684% (106-14) from 2.700% (106-03+) - The 2/5-year curve ended flatter at +52.6 bps from +53.6 bps - The 2/10-year curve ended flatter at +112.3 bps from +115.1 bps - The 2/30-year curve ended flatter at +195.8 bps from +198.6 bps - The 5/30-year curve ended flatter at +143.2 bps from +145 bps

  7. BULLET: US TSYS SUMMARY: Treasuries Fri end mixed after......
    Market News Intl Fixed Income Bullets | 02/05/16 03:05 PM EST

    US TSYS SUMMARY: Treasuries Fri end mixed after round-turn, 1)Morning slide as mkt overlooked weak +151K Jan jobs to focus on 0.5% Avg Hrly Earngs, lower 4.9% jobless rate; 2) Post-data dip spurred macro buying in Mar 10Y Tsys futures after data (also before); 3) Macros also bought S&P Eminis before jobs, then sold as stocks rose; 4) Better dip buying in Tsys continued thru morning with hedge fund bid in belly Tsy futures, real money bought Mar 10Y, 30Y futures to cover shorts; 5) Traders said Tsy shorts must reign it in before weekend amid such risk as weeklong Chinese New Yr (starts Sun), wknd OPEC meeting between S.Arabia and Venezuela (not too much expected, still a risk;) 6) Some eyed higher US rate hike odds given firm Avg Hrly Earnings; 7) Tsys back in stocks/bonds/oil trade; 8) TIPS trade poorly, even during times Fri when oil improved; 9) NYMEX crude oil slid, off 2.84% recently 10) Weak afternoon stocks, oil spurred Tsys buys 11) Tsys options: large insurance buyers via a +100K Dec 86/87/88/90 put condors at 2; 12) SWaps wider after Thu big widen; payers were Street receiver unwinds amid lack of swappable issuance past wk or so, reduced Tsy 5Y-30Y cpn issuance 13) US 3Y note tight in RP into Tue $24B 3Y (more)

  8. BULLET: US TSY FUTURES CLOSE: Prices end mostly higher,......
    Market News Intl Fixed Income Bullets | 02/05/16 03:05 PM EST

    US TSY FUTURES CLOSE: Prices end mostly higher, curve flatter on very strong volume. Mar Ultra bonds closed higher by 15/32 at 168-17 with 96K traded Mar 30Y bonds were up 16/32 at 163-08 with 336K traded Mar 10Y notes were up 3/32 at 130-11.5 with 1.7M traded Mar 5Y note were off 1.25/32 at 121-01.25 with 905K traded Mar 2Y note were lower by 1/32 at 109-12.75 with 325K changing hands.

  9. BULLET: US DATA: December consumer credit use +$21.3b vs.....
    Market News Intl Fixed Income Bullets | 02/05/16 03:00 PM EST

    US DATA: December consumer credit use +$21.3b vs +$17.3b expected. November unrevised at +$14.0b. Revolving credit use +$5.8b after +$6.4b in previous month. Nonrevolving +$15.4b after +$7.7b in November. See MNI main wire.

  10. BULLET: US TSYS: TIPS see some late selling.
    Market News Intl Fixed Income Bullets | 02/05/16 02:45 PM EST

    US TSYS: TIPS see some late selling.

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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