Free Trial

Post-Data Volatility

US TSY FUTURES
Bonds bounce off initial post-Retail Sales lows, firmer but inside early range, yield curves extend inversion (new lows for 2s10s -4.646 at -62.138) as short end comes under pressure: stronger data tempers the year end "step-down" pricing: Fed funds implied hike for Dec'22 at 51.0bp vs. 49.8bp earlier, Feb'23 cumulative 86.3bp vs. 84.5bp, to 4.700%, terminal 4.92% in Jun'23 (5.08% pre-CPI).
  • No obvious headline driver for bounce, some trading desks simply state need to add duration, add flatteners.
  • Note, equities weaker (ESZ2 -10.25 at 3989.25) after bounce, IT shares getting hit after Microsoft drops 4% on weaker outlook.

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.