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Futures Re-Open Cheaper After Yesterday’s Post-FOMC Gains

US TSYS

TYM4 is trading at 107-29, -0-06+ from NY closing levels.

  • This comes after US tsys reacted positively to a less hawkish than feared message from Fed Chair Powell and the FOMC. A “Higher for Longer” message was delivered but the market focused on Powell’s comment in the press conference that "I think it's unlikely that the next policy rate move will be a hike".
  • The key additions to this statement compared to March were "So far this year, the data have not given us that greater confidence. In particular, and as I noted earlier, readings on inflation have come in above expectations. It is likely that gaining such greater confidence will take longer than previously expected."
  • And the next sentence, "We are prepared to maintain the current target range for" used to conclude "longer, if appropriate" - now it ends "as long as appropriate".
  • Cash yields were down over double digits before profit-taking set in. The 2-year fell 12bps to 4.92%. Nevertheless, it closed back under the key 5% mark at 4.960%. The 10-year richened as much as 11bps to 4.58% but finished at 4.63%.
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TYM4 is trading at 107-29, -0-06+ from NY closing levels.

  • This comes after US tsys reacted positively to a less hawkish than feared message from Fed Chair Powell and the FOMC. A “Higher for Longer” message was delivered but the market focused on Powell’s comment in the press conference that "I think it's unlikely that the next policy rate move will be a hike".
  • The key additions to this statement compared to March were "So far this year, the data have not given us that greater confidence. In particular, and as I noted earlier, readings on inflation have come in above expectations. It is likely that gaining such greater confidence will take longer than previously expected."
  • And the next sentence, "We are prepared to maintain the current target range for" used to conclude "longer, if appropriate" - now it ends "as long as appropriate".
  • Cash yields were down over double digits before profit-taking set in. The 2-year fell 12bps to 4.92%. Nevertheless, it closed back under the key 5% mark at 4.960%. The 10-year richened as much as 11bps to 4.58% but finished at 4.63%.