J.P.Morgan Wary Of Deminished Liquidity Around NFPs Ahead Of Long Weekend

J.P.Morgan write that “with OIS forwards pricing in a path for the monetary policy that is in line with the median dot from the Fed’s September SEP, and intermediate Treasuries somewhat cheap relative to their underlying drivers, this would at face value suggest more limited upside room for yields to rise over the near term. However, in an environment where elevated macro policy uncertainty are contributing to high volatility and reduced liquidity, any move might be exaggerated tomorrow on a Friday ahead of a long weekend, and a strong upside surprise could still push yields higher.”