Free Trial

Core FI off earlier highs

  • Core fixed income moved higher in early European trading but since around 8:45GMT / 3:45ET we have moved off the highs. These moves higher were in spite of UK activity data coming in better than expected.
  • Terminal rate expectations have also moved off their lows over the past 90 minutes of trading, too.
  • There were no headlines to drive the moves off the highs, but we note that there has been a significant reduction in terminal rate pricing and ensuing core FI rally over the past week or so, so we may have just moved too far, too fast.
  • Looking ahead to today's events, we will receive US import / export price data at 13:30GMT / 8:30ET but the key release of the day will be Michigan inflation expectations data at 15:00GMT / 10:00ET.
  • In terms of speakers the Fed's Kashkari and Harker are the highlights (although the latter spoke yesterday).
  • TY1 futures are up 0-1 today at 115-08+ with 10y UST yields up 0.7bp at 3.452% and 2y yields down -3.0bp at 4.117%.
  • Bund futures are up 0.66 today at 138.88 with 10y Bund yields down -4.9bp at 2.104% and Schatz yields down -3.0bp at 2.519%.
  • Gilt futures are up 0.36 today at 104.54 with 10y yields down -2.5bp at 3.306% and 2y yields down -0.5bp at 3.401%.

To read the full story



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.