Free Trial

Moves post-FOMC

GILTS

Gilts have seen some bear flattening following the Fed meeting yesterday, but the flattening move is much smaller than the outright move with 30-year gilt yields 4.6bp higher on the day while the 5s30s curve has flattened by 2.0bp.

  • In SONIA futures, February hike probability is now 96%, up from around 90% yesterday but down from the peak of 105% hit on the open today.
  • In terms of hikes priced in by November, markets now see 4.6 (up from 4.35 yesterday's close).
  • Terminal rate in SONIA futures now sees Bank Rate peak around 1.70% (up from around 1.60% yesterday).
  • 2y yields up 6.6bp today at 0.977%
  • 5y yields up 6.6bp today at 1.086%
  • 10y yields up 5.5bp today at 1.251%
  • 30y yields up 4.6bp today at 1.377%
  • 2s10s down -1.1bp today at 27.4bp
  • 10s30s down -0.9bp today at 12.6bp

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.