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Gertrude Chavez-Dreyfuss

U.S. bitcoin ATM operator to add Dai stablecoin, launch remittance service

10:14am EDT

NEW YORK Coinsource, a Texas-based bitcoin ATM operator, will make the Dai stablecoin available on its machines this summer, in preparation for the launch of a full remittance service, a company official told Reuters.

Bitcoin trades above $11,000, after 10% weekend jump

Jun 24 2019

LONDON/NEW YORK Bitcoin tested 15-month highs on Monday after jumping more than 10% over the weekend, with analysts ascribing the spike to growing optimism over the adoption of cryptocurrencies after Facebook unveiled its Libra digital coin. | Video

TREASURIES-Prices drop as investors cash in on 2-day rally

Jun 21 2019

* 2-year yields post largest rise since April * July cut not certain; U.S. economy solid -analyst * U.S. existing home sales rise (New throughout, updates market activity) By Gertrude Chavez-Dreyfuss NEW YORK, June 21 U.S. Treasury prices fell sharply on Friday, as investors cashed in on steep gains the last two days that saw yields drop to multi-year lows in the wake of a Federal Reserve statement that flagged interest rate cuts this year. The price rally on Thursday pushed U.S. benchmark 10-year Treasury yields below 2% for the first time in more than 2-1/2 years, while 30-year yields hit their lowest since October 2016. Yields on U.S. 2-year notes slid to their lowest since mid-November 2017. A few analysts believe the rally that followed the Fed's decision and statement on Wednesday was overdone and now the market is ratcheting back forecasts of three to four rate cuts given that the U.S. economy, while slowing, remained solid overall. Scott Anderson, chief economist, at Bank of the West in San Francisco, said even though President Donald Trump has been pressuring the Fed to cut interest rates, economic arguments for "panicked rate cuts" as soon as next month are thin right now. "Unless something goes seriously off the rails with the U.S. economy over the next 30 days ... the case for aggressive rate cuts will be just as dubious as it is now," he said. Still, the market remained positioned for lower rates going forward. The Fed on Wednesday set the stage for interest rate cuts starting next month, saying it was ready to counter growing global and domestic economic risks amid rising trade tensions and weak inflation. Yet Fed officials still projected the targeted overnight lending rate to remain in a range of 2.25% to 2.50% this year. In afternoon trading, U.S. 10-year note yields rose to 2.064% from 2.0% late on Thursday. Yields on U.S. 30-year bonds advanced to 2.591%, from 2.527% on Thursday. At the short end of the curve, U.S. 2-year yields were up at 1.778%, from Thursday's 1.728%. Treasury supply is a big focus next week, with debt managers selling $113 billion in U.S. 2-year, 5-year, and 7-year notes, including $18 billion in 2-year floating rate notes. Yields showed little reaction overall to upbeat data on U.S. existing home sales. U.S. 10-year and 30-year yields hit session highs shortly before the release of the housing data, and pared gains after. U.S. existing home sales expanded 2.5% to a seasonally-adjusted annual rate of 5.34 million units last month. Friday, June 21 at 1507 EDT (1907 GMT): Price Current Net Yield % Change (bps) Three-month bills 2.065 2.1099 -0.026 Six-month bills 1.9975 2.051 0.010 Two-year note 100-167/256 1.7802 0.052 Three-year note 100-10/256 1.7364 0.056 Five-year note 100-236/256 1.8038 0.066 Seven-year note 101-68/256 1.929 0.067 10-year note 102-192/256 2.0661 0.065 30-year bond 105-220/256 2.592 0.065 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 1.50 -1.25 spread U.S. 3-year dollar swap 0.50 -1.00 spread U.S. 5-year dollar swap -2.50 -0.50 spread U.S. 10-year dollar swap -7.00 -0.25 spread U.S. 30-year dollar swap -34.00 -0.75 spread (Reporting by Gertrude Chavez-Dreyfuss; editing by Jonathan Oatis and David Gregorio)

TREASURIES-U.S. prices retreat after steep gains, but bias still for lower yields

Jun 21 2019

By Gertrude Chavez-Dreyfuss NEW YORK, June 21 U.S. Treasury prices fell on Friday, as investors cashed in on sharp gains the last two days that saw yields drop to multi-year lows in the wake of a Federal Reserve statement that flagged interest rate cuts this year. U.S. benchmark 10-year Treasury yields dropped on Thursday below 2% for the first time in more than 2-1/2 years, while 30-year yields plummeted to their lowest since October 2016. Yields on U.S. 2-year notes slid as well to their weakest level since mid-November 2017. A few analysts believe that as the market digested the Fed's decision and statement on Wednesday, some have pushed back on the overall market forecasts of three to four rate cuts. "For some people, the Fed seems like it's not rushing to cut," said Stan Shipley, fixed-income strategist at Evercore ISI in New York. "Expectations of a 50-basis-point cut or a June cut immediately were dashed last Wednesday. So if the Fed thinks it may go 75 basis points in the next six to nine months, people are thinking they may only go 50 basis points, so 25 and 25," he added. BMO Capital Markets somewhat echoed Shipley's view. In Friday's research note it said: "The economy hasn't gone off the rails, but the conductors are getting a bit jittery." That said, the market is still positioned for lower yields going forward, and analysts said it is not wise to bet against the Fed. The Fed on Wednesday set the stage for interest rate cuts starting next month, saying it is ready to counter growing global and domestic economic risks amid rising trade tensions and weak inflation. Fed officials, though, still projected the targeted overnight lending rate to remain in a range of 2.25% to 2.50% for the rest of this year. In morning trading, U.S. 10-year note yields rose to 2.059% from 2.0% late on Thursday. "I don't think there's a lot of demand out there for a 10-year note at more than 2.0%," said Evercore's Shipley. "So people are starting to shorten their duration bets." Yields on U.S. 30-year bonds advanced to 2.565%, from 2.527% on Thursday. At the short end of the curve, U.S. 2-year yields were up at 1.796%, from Thursday's 1.728%. Yields were little changed overall after the release of upbeat data on U.S. existing home sales. U.S. 10-year and 30-year yields did hit session highs shortly before the release of the housing data, and pared gains shortly after. U.S. existing home sales increased 2.5% to a seasonally adjusted annual rate of 5.34 million units last month. April's sales pace was revised slightly higher to 5.21 million from 5.19 million units. June 21 Friday 10:06 AM New York / 1406 GMT Price Current Net Yield % Change (bps) Three-month bills 2.08 2.1254 -0.011 Six-month bills 2.0025 2.0562 0.015 Two-year note 100-163/256 1.7884 0.060 Three-year note 100-4/256 1.7445 0.065 Five-year note 100-234/256 1.8054 0.067 Seven-year note 101-80/256 1.9218 0.060 10-year note 102-220/256 2.054 0.053 30-year bond 106-128/256 2.5623 0.035 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 2.00 -0.75 spread U.S. 3-year dollar swap 1.00 -0.50 spread U.S. 5-year dollar swap -2.00 0.00 spread U.S. 10-year dollar swap -6.00 0.75 spread U.S. 30-year dollar swap -32.25 1.00 spread (Reporting by Gertrude Chavez-Dreyfuss; editing by Jonathan Oatis)

New tokens thrive in crypto market but sales raise questions

Jun 20 2019

NEW YORK Initial exchange offerings (IEOs) have been the latest darlings in raising funds for cryptocurrency projects, but intensifying regulatory scrutiny and investors' concern about the viability of the companies raising capital are flashing red flags.

Explainer: Initial exchange offerings flourish in crypto market

Jun 20 2019

NEW YORK Initial exchange offerings (IEOs) are currently the most popular fundraising trend in the cryptocurrency industry, which has seen poster child bitcoin surge more than 150% in 2019. As the name suggests, initial exchange offerings are conducted over crypto trading platforms and exchanges.

TREASURIES-U.S. 10-year yield sinks below 2% after Fed signals rate cut

Jun 20 2019

(Adds fresh comment, updates prices) By Gertrude Chavez-Dreyfuss NEW YORK, June 20 U.S. benchmark 10-year Treasury yields on Thursday dropped below 2% for the first time in more than 2-1/2 years, while other maturities fell to multiyear lows as well, a day after the Federal Reserve flagged interest rate cuts as early as next month. U.S. 30-year yields likewise plunged to their lowest since October 2016, while those on two-year notes slid to their weakest level since mid-November 2017. Growing tensions with Iran added to the bid in Treasuries as well. The United States is pursuing a campaign to isolate Iran to contain its nuclear and ballistic missile programs and limit its role in regional wars. But the interest rate outlook has been the primary focus. The Fed on Wednesday signaled cuts as early as July and by as much as half a percentage point, saying it was ready to battle growing global and domestic economic risks amid rising trade tensions and weak inflation. "The statement indicated the Fed no longer insists on a pause or patience, providing an open ear to doves at upcoming meetings. Also critical ... acknowledgment that inflation pressures are muted," said Jim Vogel, interest rate strategist, at FTN Financial in Memphis, Tennessee. In afternoon trading, U.S. 10-year note yields fell to 2.0% from 2.027% late on Wednesday. Earlier in the global session, 10-year yields fell to 1.974%, the lowest since November 2016. Yields on U.S. 30-year bonds slipped to 2.53%, from 2.54% on Wednesday. They fell as low as 2.48%, a level last touched in late October 2016. At the short end of the curve, U.S. 2-year yields slid to 1.696%, the lowest since mid-November 2017, from Wednesday's 1.766%. They were last at 1.73%. "The near-term bias is toward lower yields because we have a few risk events to get through, such as the G20 meeting and overall just digesting the dovish Fed," said Subadra Rajappa, head of U.S. rates strategy at Societe Generale in New York. "I think the focus from now on is inflation and inflation expectations," she added. U.S. data showing factory activity in the mid-Atlantic region stalling in June, likely a result of recent trade tension between the United States and China, also added to the pressure on yields. The U.S. current account deficit was also wider than expected at anticipated at -$130.4 billion in the first quarter, another black mark for the economy. Fed funds futures traders saw a 100% chance the Fed would cut interest rates by a quarter point to 2.00%-2.25% next month, and a 67% possibility of a 75 basis-point easing by year-end CME Group's FedWatch showed. Thursday, June 20, at 1446 EDT (1846 GMT): Price Current Net Yield % Change (bps) Three-month bills 2.09 2.136 -0.046 Six-month bills 1.9875 2.041 -0.088 Two-year note 100-193/256 1.7284 -0.038 Three-year note 100-52/256 1.6799 -0.027 Five-year note 101-60/256 1.7382 -0.030 Seven-year note 101-180/256 1.8623 -0.027 10-year note 103-88/256 2.0009 -0.026 30-year bond 107-56/256 2.5293 -0.011 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 2.50 0.25 spread U.S. 3-year dollar swap 1.50 -0.25 spread U.S. 5-year dollar swap -2.00 -0.50 spread U.S. 10-year dollar swap -6.75 0.00 spread U.S. 30-year dollar swap -33.50 -0.50 spread (Reporting by Gertrude Chavez-Dreyfuss; editing by Jonathan Oatis and Richard Chang)

TREASURIES-U.S. 10-year yield falls below 2% after Fed rate cut outlook

Jun 20 2019

By Gertrude Chavez-Dreyfuss NEW YORK, June 20 U.S. benchmark 10-year Treasury yields on Thursday dropped below 2% for the first time in more than 2-1/2 years, while other maturities fell to multi-year lows as well, a day after the Federal Reserve flagged interest rate cuts as early as next month. U.S. 30-year yields likewise plunged to their lowest since October 2016, while those on two-year notes slid to their weakest level since mid-November 2017. The Fed on Wednesday signaled interest rate cuts beginning as early as July, saying it is ready to battle growing global and domestic economic risks given rising trade tensions and weak inflation. "The statement indicated the Fed no longer insists on a pause or patience, providing an open ear to doves at upcoming meetings. Also critical ... acknowledgment that inflation pressures are muted," said Jim Vogel, interest rate strategist, at FTN Financial in Memphis, Tennessee. "As difficult as it might be to imagine, rates are also free to fall further," he added. In morning trading, U.S. 10-year note yields fell to 1.995% from 2.027% late on Wednesday. Earlier in the global session, 10-year yields fell to 1.974%. Yields on U.S. 30-year bonds dropped to 2.52%, from 2.54% on Wednesday. They fell as low as 2.48%, the lowest since late October 2016. At the short end of the curve, U.S. 2-year yields slid to 1.696%, the lowest since mid-November 2017, from Wednesday's 1.766%. They were last at 1.716%. U.S. data showing factory activity in the mid-Atlantic region stalling in June, likely a result of recent trade tension between the United States and China, also added to the pressure on yields. The U.S. current account deficit was also wider than expected at anticipated at -$130.4 billion in the first quarter, another black mark for the economy. "Overall, a concerning round of data that confirms the Treasury market rally rather than extending it," said Ian Lyngen, head of U.S. rates strategy, at BMO Capital Markets in New York. Fed funds futures implied traders saw a 100% chance the Fed would cut the target range on short-term interest rates by a quarter point to 2.00%-2.25% in six weeks, CME Group's FedWatch showed. Futures traders also priced a 67% possibility the Fed would lower short-term rates by 75 basis points by year-end. June 20 Thursday 10:08AM New York / 1408 GMT Price Current Net Yield % Change (bps) Three-month bills 2.1 2.1463 -0.036 Six-month bills 2 2.054 -0.075 Two-year note 100-197/256 1.7203 -0.046 Three-year note 100-56/256 1.6745 -0.033 Five-year note 101-62/256 1.7366 -0.031 Seven-year note 101-176/256 1.8647 -0.024 10-year note 103-84/256 2.0026 -0.024 30-year bond 107-60/256 2.5286 -0.011 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 1.50 -0.75 spread U.S. 3-year dollar swap 0.50 -1.25 spread U.S. 5-year dollar swap -2.75 -1.25 spread U.S. 10-year dollar swap -7.25 -0.50 spread U.S. 30-year dollar swap -33.25 -0.25 spread (Reporting by Gertrude Chavez-Dreyfuss; editing by Jonathan Oatis)

Chainalysis, LINE unit BITBOX in anti-money laundering partnership

Jun 20 2019

NEW YORK Chainalysis, a start-up specializing in countering money laundering and fraud in the digital currency space, has forged a partnership with BITBOX, a cryptocurrency exchange launched in July 2018, a top official of the U.S. company said on Thursday.

U.S. video streaming app YouNow files cryptocurrency offering with SEC

Jun 19 2019

NEW YORK U.S. live video streaming company YouNow on Wednesday filed with the Securities and Exchange Commission a public offering circular to distribute its own digital currency called Props.

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