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Awaiting the Fed

BOND SUMMARY
  • Fixed income is generally a bit lower but equities are mixed as the market
    awaits the FOMC meeting later today.
  • The most noteworthy move in major fixed income markets in the European
    session was in BTPs which dropped over 40 ticks with no headline triggers.
    The move was accompanied by decent volumes but the futures contract has
    now recovered its losses and trades flat on the day.
  • As we noted in our Fed preview, today's meeting will see little in the way of
    immediate action but will set the stage for the foreseeable future with
    forward guidance expected.
  • TY1 futures are down -0-3 today at 139-19+ with 10y UST yields up 1.0bp
    at 0.590% and 2y yields up 0.3bp at 0.144%.
  • Bund futures are down -0.03 today at 177.10 with 10y Bund yields down
    -0.2bp at -0.511% and Schatz yields down -0.1bp at -0.695%.
  • Gilt futures are down -0.05 today at 138.34 with 10y yields up 0.3bp at
    0.110% and 2y yields up 1.7bp at -0.82%.

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