US DATA: Jun Paychex-IHS Small Business Jobs Index -0.03% to 100.63. Year-over-year the index decreased 0.44 percent. After increasing 0.23 percent during the first quarter of 2015, the pace of employment growth slowed 0.16 percent in the second quarter.
US DATA: Q1 Net int'l investment position was -$6.8T, "The increase in the net investment position was mostly attributable to the increase in foreign equity prices that raised the value of U.S. direct and portfolio investment assets; these price increases were partly offset by the depreciation of major foreign currencies against the U.S. dollar that lowered the value of U.S. assets in dollar terms." See http://bea.gov/newsreleases/international/intinv/intinvnewsrelease.htm
US TSY OPTIONS: Aside from a block/buy of 10,000 TYQ 124 puts at 13/64 overnight, screen trade includes -- another 7,000 TYQ 124 puts, 14/64 last -- 10,500 TYQ 125 puts, 30/64 last -- 3,000 TYU 124 puts, 30/64 -- 6,300 TYU 125.5 puts, 1-0/64 last
US TSYS: Treasuries hold a tight lower range in early NY action as accounts put the finishing touches on quarter-end, month-end and half-year end positions. Cash 10-year note is at 2.366%. Other overnight Tsys action included 5Y futures sales. Meanwhile today will see the settlement of last week's 2Y, 5Y, 7Y auctions, which remain at a profit, though Tsys prices are off the Greek-inspired safe-haven bid rally of Mon, before Tsys prices started to seep lower around 4am ET today. Also the NY Fed will do its one-day reverse repo early today, at 9:30am ET start, 10am ET finish to help accounts line up their quarter-end liquidity.
US MBS: 30Y MBS ended wider to 10Y Tsys by about 5/32s as Greek uncertainty pressurized other spread product and caused a flattening rally in Tsys. However, some shops reported good real money buying. Others said their flows were light and two-way. Origination supply was about $2B. Regardless of what think of MBS and outlook for Fed, it is Greece that has to be resolved right now and that is happening at a tricky time: month/qtr end, looming US jobs report, July 4 holidays with its associated terror risks, compromised liquidity for many reasons. Looming off to the side is PR and it has an elec rev payment due tomorrow. Greece said yesty would not pay IMF today. IMF does not use term "default" but "arrears" instead. If not paid by COB today, it will be largest single case to the IMF and largest by major advanced economy. The last major case was Zimbabwe in 2001. Is more "he loves me, loves me not" talk this morning. Today get Case Shiller, CAPM, Cons Conf. 2 MBS Fed buys. Tomorrow lots of imp data. Jobs Thur and off Friday.
US PIPELINE: No new sales of investment-grade corporate bonds surfaced Monday, while risk aversion permeated the U.S. credit market amid intensified concerns about a Greek default and exit from the Eurozone. Investment-grade corporate bond syndicate managers anticipate around $5-10 billion of new issuance this holiday-shortened week, but both Greece and Puerto Rico default worries, as well as some month-end and quarter-end economic data will most likely keep the pace light, including the June jobs report Thurs, followed by Friday's US bond market close for Independence Day. A growing list of potential near-term corporate bond sales are in the pipeline, including from CVS Health Corp (CVS), Target, Intel (INTC), Avago Technologies, DBS Bank, Adani Ports and Special Economic Zone Ltd., Pertamena Persero PT, Corp Financiera de Desarrollo and South Korea's Kookmin Bank. In the agency bond market, Freddie Mac (FMCC) will announce its Reference Note issuance decision Wed. Visit the US$ Credit Supply pipeline for a full list of deals.
US TSY/RECAP: US Tsys a smidge lower/flatter, USD mixed vs majors (lower vs JPY, CAD and AUS) while global stocks are mixed (Europe mostly lower while US/Asia mostly up), EGBs up, bund curve steeper while EU peripheral bonds are lower/spds vs Germany a tad wider with Greece +41 bps at 1470 bps. Early chatter on Greece is that Tsipras may go to Brussels or Berlin for talks and that Ger Merkel says door remains open for Greece but it is clear that Greece will not make IMF payment today. Mkt still very choppy overnight with the main focus on a sharply lower DAX with tech names getting hit. US Tsys opened Tokyo firm and traded sideways amid South-East-Asian real money, Asian bank and Asian bank portfolio demand in 5Y. Additionally in futures a decent sized 5/10Y flattener was seen. In London, Tsys fell with bunds but bounced as the long end performed. Modest flow with better sell flows from Japanese regionals sin short coupons, and in 5-10Y while Asian real money sold T-bills, European accts sold 3Y, 10Y and bought 5Y and 10Y. Quarter end has sidelined some players. Data today includes ISM Milwaukee, Case-Shiller, Chicago PM and Consumer Confidence.
US SWAPS: Spds running mixed wings wider vs. tighter intermediates after generally modest overnight range, carry-over payers in 5s noted. Currently, the 2-year is 0.19 bps wider at 25.5, the 5-year 0.12 bps tighter at 12.88, the 10-year 0.5 bps tighter at 10.38, the 30-year 0.12 bps wider at -18.81; swap forward rates has 1y1y at 1.301%, 2y1y at 1.971%, 5y5y at 3.216%, 10y10y at 3.342%, spread and rate levels via Bloomberg. By Mon's close, spds wider, at/near session highs but off early overnight levels after the bell. Sources reported better paying across the curve with intermittent unwinds as widener positions took profits. Otherwise, overnight volumes were much higher, w/flow including fast money payers in 2s and in 2s/5s/10s forwards, better paying in 5s from various accounts (vs. some dealer profit taking in wideners), foreign real money unwinding receivers in 10s, and paying in 10s-30s from option accts. Dealers noted a rather mild 0.19 rise in 3-month Libor and limited widening in U.S. swaps suggested markets can endure for the next few days.
US DATA: The Retail Economist-Goldman Sachs (TRE-GS) Weekly Chain Store Sales Index rose by another hefty 2.2% (seasonally adjusted) compared with its previous week for the period ending on Saturday, June 27. Moreover, on a year-over-year basis, sales rose by 2.7%--its strongest year-over-year pace since May 23. Saw a late-month spurt but fin'l problems may impede sales ahead.
US TSYS: Final month end ests for July vs prelim from Barclays (BCS): US Tsys +0.10 yrs, same as prelim - Agencies: +0.05 yrs, same as prelim - Credit: +0.06 vs +0.05 yrs in prelim - Govt/Credit: +0.08 yrs, same as prelim - MBS: +0.12 yrs vs +0.08 yrs in prelim - Aggregate: +0.10 yrs vs +0.08 yrs in prelim - Long Govt/Credit: +0.07 yrs vs +0.08 yrs in prelim - Intermediate Credit: +0.07 yrs; same as prelim - Intermediate Govt: +0.08 yrs, same as prelim - Intermediate Gov/Credit +0.08 yrs, same as prelim - High Yield +0.05 yrs vs +0.04 years in prelim - US TIPS (Series-L) empirical extension: +0.11 yrs vs +0.03 yrs in prelim; real extension +0.12 yrs, same as prelim - US Govt Inflation-Linked (Series-B) Index extension:+0.11 yrs, same
US TSYS: CA says there was 'healing' price action overnight, "Front and center will be the ECB's QE and Outright Monetary Transactions." Tokyo had an Asian account take profits but 5y notes saw good demand from Southeast real money. Asian banks and portfolios, Japanese lifers were busy in the long end. Hedges sold 5y futures. Swaps saw 5y payers. UK saw better sales in core fixed income.
US TSY FUTURES: US Futures/Options block trade recap: 2,734 Sep 5Y at 119-10.5 at 9:28 pm ET (Tokyo) - seller 1,705 Sep 10Y at 126-11 at 9:28 pm ET (Tokyo) - buyer so net 5/10Y flattener - 10,000 Aug 124 puts at 13 at 4:00 am ET - buyer - 3,000 Dec17 Eurodlr Futures at 97-96 at 3;10 am ET - buyer
US TSYS: JPM Treasury Client Survey, June 29, 2015 All Clients Date Long Neutral Short Changes 06/29 18 53 29 20 06/22 16 50 34 14 06/15 16 46 38 31 06/08 9 52 39 9 All clients survey shows the most net longs since April 6, 2015. Actives Date Long Neutral Short Changes 06/29 17 58 25 33 06/22 17 58 25 17 06/15 17 42 42 42 06/08 8 50 42 8 Net longs 6% longer than 1Y avg.
ECB: The ECB will carry out a 7-day main refinancing operation (MRO) Tuesday, with E88.234bln maturing. Expectations is for demand at this weeks 7-day MRO to remain stable although risk is seen to the up side due to Greek referendum vote on Sunday. The results of the 7-day MRO is due to be announced at around 0930GMT.
US TSYS: USTs are trading modestly lower in London trade Tuesday, with the ultra-long end of the curve outperforming very modestly. Light selling was seen from the early levels, although safe-haven demand is still underpinning. The yield on the 2Y was last at 0.6525%, with the 5Y at 1.645%, the 10Y at 2.34% and the Bond at 3.10%. The curve saw the 2/10-yr spread at 168.7 bps and 2/30s at 244.9 bps. Cross-border trade saw the 10-year US/German spread at 157 bps.
EMU DATA: (add) So-called core inflation, which strips out the prices of food, energy, alcohol and tobacco prices, was estimated at +0.8%, Eurostat said, down from the final May reading of +0.9% and also matching the MNI median forecast. Energy prices led the declines in headline inflation, Eurostat estimated, and in fact had a bigger impact than in the previous month, falling an estimated -5.1% in June compared to the -4.8% slide in May. However, the energy subcomponent was the only reading in negative territory for the month.
EMU DATA: EMU JUN FLASH HICP +0.2% Y/Y, MAY +0.3%, APR UNCH, MAR -0.1% EMU JUN Y/Y FLASH HICP IN LINE MNI MEDIAN FCAST (+0.2%) EMU JUN 'CORE' HICP +0.8% Y/Y; IN LINE MNI MEDIAN FCST(+0.8%) --------------------------------------------------------------- Euro area inflation slipped a little in June according to the flash reading from Eurostat, although coming in line with the MNI median forecast. There was certainly no surprise in a modestly lower reading after the German data released Monday. Final EMU inflation data will be released on July 16. Full details on MNI Mainwire.
EMU DATA: EMU MAY SA UNEMPLOYMENT RATE 11.1%; APR UNREV 11.1% EMU MAY UNEMPLOYMENT RATE MATCHES MNI MEDIAN FCAST (11.1%) EMU MAY YOUTH UNEMPLOYMENT RATE 22.1%; APR UNREV 22.3% -------------------------------------------------------- Euro area unemployment was unchanged in May, in line with median forecasts, static at 11.1%. April data was unrevised at 11.1%. A slight improvement was seen in youth unemployment levels through, although remaining at very elevated levels, coming in at 22.1% vs April's 22.3%.
UK Data: Q1 Current Account Deficit Stg26.548bn Versus Stg28.930bn Q4 -Q1 Current Account Gap 5.8% GDP Versus 6.4% in Q4 ----------------------------------------------------------------------- The UK's 2014 current account deficit was revised wider to a record breaking 5.9% of GDP, highest since records began in 1948. The 2014 current account gap had previously been estimated at 5.5% of GDP. The narrowing of the deficit in the first quarter was due in large part to timing of payments to EU institutions, with the payments which drove the fourth quarter deficit wider. These payments appear in the "secondary income" line in the current account, which narrowed to stg5.543 billion in the first quarter from stg7.671 billion in the fourth. The data, therefore, show no fundamental improvement in Q1.
UK Data: Q1 GDP Revised Higher As Expected Due Stronger Construction -UK Q1 GDP Revised up to 0.4% q/q from 0.3% q/q; up 2.9% y/y -UK 2014 GDP Y/Y Revised Up To 3.0%; Up From 2.8% Prior -UK Apr Index Of Services +0.2% m/m; +2.8% y/y ---------------------------------------------------------------------- UK Q1 GDP was revised higher in line with expectations, due in large part to a sharp upward revision in construction output as a result of changes in the way that dataset is calculated. Compensation of employees and the household savings ratio fell sharply, however, largely due to a fall in employers' social security contributions. Services output rose very slightly, pulled higher by rising distribution, hotel and restaurant output with output in the key business services and finances subsector very slightly lower. The upward revision to these growth figures won't surprise Bank of England monetary policymakers who had expected growth figures to be revised higher in the later estimates.
MNI: GERMANY JUN SA UNEMPLOYMENT -1K VS MAY -5K GERMANY JUN SA UNEMPLOYMENT RATE 6.4% VS MAY 6.4% GERMANY JUN SA UNEMPLOYMENT 2.786 MLN VS MAY 2.787 MLN GERMANY JUN NSA UNEMPLOYMENT RATE 6.2% VS MAY 6.3% GERMANY JUN NSA UNEMPLOYMENT 2.711 MLN VS MAY 2.762 MLN GERMANY JUN SA JOB VACANCIES +8K VS MAY +10K GERMANY MAY SA PAYROLL JOBS +7K VS APR +21K
GREECE: Timeline of key events in Greece: - End June Greece to pay E1.5bln public-sector wages and pensions - Jun 30 Greece E1.6bln IMF bundled payment deadline at 2200GMT - Jun 30 Greece's EU programme extension ends - Jun 30 EU Juncker speaks to API-IPA press association in Brussels at 1600GMT - Jul 01 ECB Governing Council non-monetary policy meeting - Jul 02 ECB Draghi gives opening remarks at T2S launch celebration, in Milan - Jul 05 Greek government to hold referendum - Jul 06 Greek govt imposed bank holidays/capital controls expire - Jul 09 Greek Apr unemployment rate - Jul 10 Greece T-bill redemption for E2bln - Jul 13 Greece to pay IMF loan E467mln - Jul 14 Greece to pay Sumurai bond redemption for Y20bln - Jul 15 Greece to pay E200mln mid-month public-sector wages and pensions - Jul 16 ECB Governing Council meeting, press conference in Frankfurt - Jul 17 Greece T-bill redemption for E1bln
ECB: Excess liquidity in the Eurozone rose sharply to E385.799bln Monday from E363.057bln the night before according to latest ECB figures. Use of ECB deposit facility rose slightly to E88.957bln from E86.293bln Friday, while use of the ECB's marginal lending facility increased to E408mln from E267mln.
SONIA: The front end of the Sonia curve is seen flatter in early Tuesday morning trading compared to Monday's close as once again events in Greece overshadow economic data, for now at least. UK GfK June consumer confidence rose to 7, new post-crisis high and up from 1 in May. Final UK Q1 GDP is released at 0830GMT with market looking for a slight increase to 0.4% q/q from 0.3% q/q. MNI see the market is continuing to price first BoE rate hike in May 2016 but with a very high probability of an April lift-off. MNI see 1y1y Sonia 2.5bp lower at 108.5bp, & following levels in forward BoE dated Sonia:- - Jan-16 1.5bp lower at 0.531% - Feb-16 1.8bp lower at 0.616% - Mar-16 2.1bp lower at 0.639% - Apr-16 2.3bp lower at 0.648% - May-16 2.5bp lower at 0.745% - Jun-16 2.9bp lower at 0.768% - Jul-16 3.0bp lower at 0.791% - Aug-17 2.9bp lower at 0.864%
EMU DATA: -France May Consumer Spending 0.1% M/M, 1.8% Y/Y -France May Consumer Spending Above MNI Survey Median of -0.2% ----------------------------------------------------------------- France consumer spending rose by 0.1% in May after being flat in April, a downward revision from a previously reported 0.1% gain. The May increase was above the MNI survey median of -0.2% and came as energy spending rebounded by 0.3% after sharp declines in March and April, the national statistics institute Insee said.
EUROZONE: Timeline of key events in the Eurozone: - Jun 30 Greece E1.6bln IMF bundled payment deadline at 2200GMT - Jun 30 Greece's EU programme extension ends - Jun 30 Eurozone June flash HICP data - Jun 30 Eurozone May unemployment data - Jun 30 EU Juncker speaks to API-IPA press association in Brussels at 1600GMT - Jun 30 ECB Nowotny keynote at "Raiffeisen Bank International-Summer Talk" - Jun 30 Italy taps 2020-/2025 BTP, 2022 CCTeu for up to E7bln - Jun 30 Italy zero coupon CTZ redemption for E15.94bln - Jul 01 Eurozone June final PMI manufacturing - Jul 01 ECB meeting accounts - Jul 01 Germany sells new 5-year benchmark Oct 2020 Bobl#172 for up to E5bln - Jul 01 ECB Governing Council non-monetary policy meeting - Jul 01 ECB Weidmann and Buba Buch participate in German govt cabinet meeting - Jul 02 EU Juncker, Moscovici speak at EU Parliament Panel in Brussels - Jul 02 ECB Draghi gives opening remarks at T2S launch celebration, in Milan
GERMAN DATA: GERMANY MAY REAL SA RETAIL SALES +0.5% M/M, NSA -0.4% Y/Y GERMANY APR M/M RETAIL SALES REVISED DOWN TO +1.3% (+1.7%) -------------------------------------------------------------- German retail sales grew in May, although at a slower pace than April's downwardly revised 1.3%. Full details on MNI Mainwire.
GERMAN DATA: GERMANY MAY ILO SA EMPLOYED 42.761 MLN; +7K M/M: STATS OFF. GERMANY MAY ILO SA UNEMPLOYED 1.97 MLN GERMANY MAY ILO SA UNEMPLOYMENT RATE 4.7%; APR 4.7% ------------------------------------------------------------ German Federal unemployment data will be released late Tuesday, expected at 0755GMT.
US TSY FUTURES: Treasury futures have had very little reaction to news that Puerto Rico's rating has been cut to CCC- from S&P as it appears that the news may have been anticipated after Fitch's comments last night. Also with Greece ruling market sentiment at present, it appears that the market is happy to stay within its current tight range until London arrives. Currently 10yr futures are unchanged from the close on reasonable volumes of 37k, with the market trading in a 126-075 to 126-11 range in the past few hours.
CHINA DATA: Caixin Media Company, a Chinese media group, announced it will sponsor the Markit China PMI starting from August. Caixin said it won the sponsorship via an auction. HSBC (HSBC) sponsored the Markit China PMI the past five years.
US TSYS: A very quiet start for treasuries as the market prepares for month-end/quarter-end, with narrow ranges expected. Around ~$300 mln has traded so far with 10yr yields unchanged in early trade and are currently trading at 2.3242%. Sources expect a range of 2.36% to 2.31% in 10's in Asia.
US TSYS/RESEARCH: Morgan Stanley's Ted Wieseman notes that "Greece risks may exacerbate quarter-end financing and liquidity market strains, as term reverse repos with the New York Fed have been maxed out". He says that "there were $104 billion in bids for the available $100 billion in term RRP's in Monday's operation maturing Wednesday at a 0.07% awarded rate, below the 0.08% maximum". He further says that "followed $116 billion in demand for the maximum $100 billion at a 0.07% clearing rate for last Thursday's operation maturing this Thursday". Wieseman notes that "there will be the maximum $200 billion in term outstanding Tuesday plus however much is demanded at the overnight facility, which is capped at $300 billion at a 0.05% rate". He concludes by saying "the hundreds of billions of dollars deposited, primarily by money market funds, at 0.05% or 0.07% rates with the Fed will probably, as in March, be at a wide gap to what leveraged investors pay to finance positions over quarter end, with the Street not having the balance sheet availability to arbitrage the difference".
JGBS: JGB futures are expected to open slightly higher after US treasury futures continued to rally past the overnight close. Sep'15 JGB futures closed the overnight session at 147.10 down 7-ticks from Monday's close, with the market seeing a 146.95/147.14 range overnight. Today JGB futures should see a similar narrow range as yesterday, with Greece and month-end expected to keep price action muted. Cash 10yr JGB should see a range of 0.46% to 0.43%. Data wise today sees labour cash and real cash earnings data released this morning, while the afternoon sees the release of housing starts and vehicle production data.
UK DATA: UK GfK June Consumer Confidence 7 vs 1 in May ----------------------------------------------------- UK consumer confidence rose to a new post-crisis high in June, with Britons as of yet untroubled by the prospect of a Greek sovereign default. The GfK Consumer Confidence Survey, compiled a month after the UK general election, has reached a post-crisis high of 7 this June, a level not seen for a decade. The confidence level is up 6 points from both May and from exactly one year ago.
US TSYS/RESEARCH: Edward Acton US Interest Rates Strategist sees 'Grexit' probability at 40%. Acton notes that "either way, the size of the Greek economy could have snuck within the US Q1 real GDP revision last week, so over the long-term, rates are unlikely to remain captive to the fate of the Hellenic nation". He observes that "instead we look to the detail that institutions such as Yen-based accounts are not buying into this risk-off push and instead looking for opportunities to sell paper; perhaps their favored peripheral and US longs". Acton further notes that "this dove-tails quite well with the MoF data released late last week showing the fourth consecutive week of net-selling of notes and bonds from Japanese accounts. Acton notes that this has accumulated to a total of $-28bn in overseas fixed income securities that have been sold.
US TSY FUTURES: (2 of 2) 6) IMF managing director must notify executive board of missed payment within 30 days, but in this case will notify immediately given the size and the potential risk to the fund. Perhaps the real test could come on July 10th when there is a E1bln t-bill redemption due. The latest news on Greece sees a last minute deal from Junker sent to Greece just now, with the proposals still inadequate a Greek official told MNI. As for US treasury futures today 126-29 yesterday's early Asian high will be resistance while support arrives at 125-20.
US TSY FUTURES: (1 of 2) The smell of burning embers has drifted over financial markets this morning after Monday's Greek inspired wildfire saw one of the largest risk-off moves in months, as equity markets were scorched as burned investors escaped to the safety of fixed income. However the question remains will these fires re-ignite, with the elevated levels of volatility suggesting yes. Currently 10yr futures are unchanged from the close on quiet volumes of 3.8k. Today Greece's payment to the IMF is due with MNI's Washington Bureau pointing out the following : 1)If Greece misses payment to IMF by COB Tuesday (6:00 pm ET) they will be in arrears to the IMF - the IMF doesn't use the term default 2)It would be the first time an advanced economy has missed a payment to the IMF 3) It would be the single largest case of arrears to IMF 4) Last major case of arrears to IMF was Zimbabwe in 2001 5) There is no grace period for payments to the IMF, nor does the IMF extend loan deadlines (they can however negotiate new terms of a program, which in practice they do quarterly in loan programs)
NEW ZEALAND: Number of new dwelling consents (incl. apartments) was flat at 0.0%m/m in May seasonally adjusted after a 0.9% fall in April, data from Statistics New Zealand showed. On a trend basis the number fell 0.2%. Dwellings trend is at a 10 year high for Auckland, although the post-earthquake tripling of dwelling consents between 2011-14 is over and the number of new consents fell 17% for the region since the peak in August 2014. Excluding apartments, building consents rose 2.4% m/m on a seasonally adjusted and 0.8% on a trend basis. Value of consents for new buildings totalled NZ$1.4 billion in May and NZ$15 billion for the year to May, an increase of 16%. Residential buildings are up 13% and non-residential up 22% on the previous 12 months.
DUE UP: Key upcoming events in the Asia-Pacific in next few sessions: (AU=Australia, JN=Japan, CH=China, NZ=New Zealand, SK=South Korea, TH=Thailand, IN=India, ID=Indonesia) - Jun 30 SK Business Survey Manuf/Non-Maunuf (Jul) - Jun 30 NZ Building Permits (May) - Jun 30 SK Industrial Production (May) - Jun 30 SK Cyclical Leading Index Change (May) - Jun 30 AU ANZ Roy Morgan Weekly Consumer Confidence Index (Jun 28) - Jun 30 AU HIA New Home Sales (May) - Jun 30 NZ ANZ Business Confidence (Jun) - Jun 30 JN Labor Cash Earnings (May) - Jun 30 AU Private Sector Credit (May) - Jun 30 JN Vehicle Production (May) - Jun 30 JN Housing Starts (May) - Jun 30 JN Construction Orders (May) - Jun 30 AU RBA's Stevens Gives Speech at OMFIF Function in London
US TSYS: LBBW's Haeling said that "it is our understanding that the Fed is currently most surprised at how negatively the strong dollar has hurt the U.S. economy this year, and that one of its priorities involves avoiding another push higher in the currency. Likewise, we do believe another sharp selloff in equities would lead more investors to buy stocks even if the initial reaction would involve selling." He adds "there are other reasons for risk asset investors to worry near-term whether it involve the very critical issue of Puerto Rican debt creating turmoil in the U.S. municipal bond market, or the suddenly bearish trend in Chinese equities," which all lead to "more uncertainty and bearish near-term dangers in risk asset mkts even if longer-term prospects remain bullish for them."
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.
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