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(Bloomberg) -- U.S. 10 yields sharp reversal from below 2012 trendline results in weekly hammer pattern as global risk markets finds some near-term stability, see weekly chart here, Bloomberg strategist Tanvir Sandhu writes.
U.S. 5y yields rejects downside break and is back above the levels seen during Oct. 2014 “flash crash”, see weekly chart here
USD/CNH sticks to 38.2% retracement from Oct. 2014 at 6.51, see daily chart here
Yuan rallied the most since 2005 yday as Zhou voiced support, drawing attention to China’s balance of payments position and normal capital outflows
iTraxx Xover closes week below 38.2% of Nov. 2011 decline; see weekly chart here
U.S. OIS curve currently assigning 30% probability of 25bps increase in Nov. from 19% a wk ago
U.S. 2y fwd 1m at 1.11%; fully prices in just two 25bps rate increases in two years
U.S. 3m2y gamma at 69 bp/annual, falling from 76bp/annual last wk which was the highest since 2011, compared with 55bp/annual at start of 2016
Rate Vols Catch Up With Equity as Riskoff Takes Hold: see analysis here
NOTE: Tanvir Sandhu is an interest-rate and derivatives strategist who writes for First Word. The observations he makes are his own and are not intended as investment advice.
