Treasury yields press higher
December 24, 2024
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–New low settles in FVH5, TYH5 and USH5. 106-02, 108-15, 113-18. Ten year cash yield up 6.7 bps to 4.593%. 2/10 treasury spread near its high for the year at +25 bps. Nearest one-year SOFR calendar is H5/H6 which is also the lowest, but now only -18 (9579, -2.0/9597 -4.5).
–5yr auction today.
–Japan Finance minister Kato warned against excessive moves in fx, but $/yen is still 157.14. Bruce Lee played Kato in the Green Hornet. If it was that Kato giving the warning we’d be at 150.
–FT headline says ‘Defaults on leverage loans soar to highest in 4 years.’ Not much of a surprise, 4 years ago rates were near zero. Fitch reported this a month ago, and the total amount is small, only $73b through October.
From ion analytics:
Annual loan defaults are soaring, with this year’s rate of 4.7% surpassing 4.5% seen during the economic slowdown in 2020 triggered by the advent of the pandemic. It also marks the highest default rate since the global financial crisis, when defaults peaked at 10.5%.
Happy holidays to all
