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E-mini S&P Fades to New Lows as Debt Ceiling

CROSS ASSET
  • A wave of risk-selling follows Bloomberg headlines on the debt ceiling. Headline cite GOP negotiator Graves as stating that talks are at a pause, and the White House are not being reasonable. The comments come as negotiators are leaving talks with negotiators on the other side of the aisle.
  • Equity selling pressure puts the e-mini S&P at fresh daily lows of 4206.75 before stabilising somewhat - gold the main beneficiary, rallying alongside weakness in the greenback.
  • FOMC-dated OIS sliding: June down -4bp since the debt ceiling headlines first hit, Dec’23 -9bps. Now pricing just +4bp for Jun and a cumulative -45bp for Dec from current levels.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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