Free Trial
JGBS

Cheapening Extends

AUD

A$ Rally Pauses

US TSYS

J.P.Morgan Recommend 10-/30-Year Flattener

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

EDZ2/EDZ3 Inversion Disappears

STIR FUTURES
  • Fed Funds terminal rate expectations of 4.70% for May’23 FOMC sit within a wide range of 4.63-4.83% today, although latter overnight with US session highs of 4.77%.
  • However, with continued increased for the Dec’23 to 4.52%, cuts are further priced out and indeed separate EDZ2/EDZ3 inversion has now disappeared from 75bps of cuts two months ago.
  • Earlier Fed commentary didn’t rock the boat: new appearances from Collins and Logan had inflation as number one priority (Collins somewhat two-sided seeking ‘clear and compelling’ signs that inflation falling but also that quite likely inflation is near peaking or may have peaked) although Bostic noted increased uncertainty and global recession odds from UK tax cuts proposals. Mester still to come at 1600ET.

117 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • Fed Funds terminal rate expectations of 4.70% for May’23 FOMC sit within a wide range of 4.63-4.83% today, although latter overnight with US session highs of 4.77%.
  • However, with continued increased for the Dec’23 to 4.52%, cuts are further priced out and indeed separate EDZ2/EDZ3 inversion has now disappeared from 75bps of cuts two months ago.
  • Earlier Fed commentary didn’t rock the boat: new appearances from Collins and Logan had inflation as number one priority (Collins somewhat two-sided seeking ‘clear and compelling’ signs that inflation falling but also that quite likely inflation is near peaking or may have peaked) although Bostic noted increased uncertainty and global recession odds from UK tax cuts proposals. Mester still to come at 1600ET.