January 20, 2023 17:57 GMT
BAX Inversion Further Off Prior Max Levels
- BAX futures holding on to an acceleration of yesterday’s paring of gains from earlier in the week that had come primarily on weaker US data.
- Front Mar’23 yields are currently 2.5bp higher, consistent with OIS pushing back to circa 22bps for Wednesday’s rate decision.
- Larger moves further out the curve, capped by Mar’24 yields +13bps and set for the highest close of the week currently at 3.65%.
- 2023 inversion has seen a decent pullback off Wed lows with BAH3/Z3 at -0.78 vs -0.91, but some of this is delayed into 1H24 with BAZ3/M4 pushing record lows at -1.075.