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Holding Off Best Levels Of The Day, Powell Eyed

BONDS

Core global FI markets have pulled back from best levels, now sitting mixed on the day, but relatively close to yesterday’s closing levels.

  • ECB-dated OIS sits a little off dovish extremes, although still shows ~117bp of cuts for ‘24 on the whole.
  • We would suggest that some caution ahead of pre-blackout comments from Fed Chair Powell helped limit the early move higher (in view of the recent round of dovish repricing re: the Fed and related potential for some pre-blackout pushback).
  • Headline flow has been pretty sparse since this morning’s round of European & UK PMIs, save typically hawkish commentary from BoE’S Haskel and the latest Fed opinion piece from WSJ’s Timiraos.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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