June 24, 2022 14:19 GMT
- EGBs and have stayed within this morning ranges this afternoon.
- Bund has nonetheless traded in another 208 ticks range.
- Although futures have mostly retraced lower this afternoon, they have bounced after the US final Michigan 5-10yr inflation expectation was revised lower.
- Notable drop in both 1yr and 5-10y inflation expectations in this survey - both very much unexpected:
- 1yr down to 5.3% from 5.4%
- 5-10y down to 3.1% from 3.3%
- This is the survey that Powell referenced at the Fed's last rate decision - so carries extra weight this month, hence spike higher across equity markets and downside pressure on yields.
- Peripherals are wider, besides Greece that sits close to flat.
- Gilt outperforms Germany, bringing the Gilt/Bund spread 2.9bps tighter.
- Looking ahead, Fed Daly will be speaking twice, on a Fox interview, and at Shadow Open Market Conference.