Free Trial

Short End Extend Lows Post-Chairman Powell, Bouncing

US EURODLR FUTURES
Fed Chairman Powell comments, while hawkish, are not exceedingly so as he intimates a 50bp is on the table for May 4 FOMC, markets pricing in two additional 50 bps through June and July meetings.
  • One-two punch with StL Fed Bullard weighing in on hikes: the "world would not come to an end" if Fed anncd a 75bp hike. That said, Bullard expressed sentiment the "bond market is not looking like a safe place to be" while the Fed "should avoid disruptions from surprise market moves."
  • See-sawing off recent lows: Eurodollar Whites (EDM2-EDH3) trading -0.080 in lead EDM2 quarterly at 98.175 vs. 98.14 low, balance of strip -0.14-0.15 appr 0.035-0.055 off lows. Reds (EDM3-EDH4) currently -0.140-0.120 appr 0.060 off lows.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.