DALY SEES 'NO URGENCY TO ADJUST THE POLICY RATE'

MNI BRIEF: Fed’s Collins Sees Rate Cuts Later Than Had Thought

MNI BRIEF: China March M2 Slows More Than Expected

MNI BRIEF: China Tightens Stock Market Supervision

MNI BRIEF: China Mar Exports Jump On Demand; Imports Improve

MNI: PBOC Sets Yuan Parity Lower At 7.0967 Fri; -4.87% Y/Y

MNI JAPAN FEB CORE MACHINE ORDERS +7.7% M/M; JAN -1.7%

MNI: BAKER HUGHES US RIG COUNT 617; OIL RIGS 506; GAS RIGS 109

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Post-LIBOR Settle Update: Cooler Rate Hike Pricing Moderates

US EURODLR FUTURES

Cooling rate hike pricing for the fall moderates as lead quarterly EDM2 pares gain slightly to 98.2275 (+0.010) after latest 3M LIBOR set' gains another +0.02200 to new 2Y high of 1.57486% (+0.06843/wk).

  • Balance of Whites (EDU2-EDH3) currently trading +0.030-0.045, Reds (EDM3-EDH4) +0.040-0.015, Greens-Golds (EDM4-EDM7) steady to +/-0.005.
  • Inversion holds to front Reds: low mkt measure of confidence in Fed managing a soft landing/avoiding recession has extended: Red Sep (EDU3) currently trading 96.995 vs. Red Jun (EDM3) at 96.905. Levels start to flatten out (dis-invert) around Blue Sep'25-Dec'25 trading 97.260-.245.
  • Wednesday FI option trade recap: FI option trade volumes were rather modest Wednesday, some accounts plying the sidelined in the leadup to the FOMC minutes release. Risk-on gained traction after some initial two-way trade -- Tsys held narrow range with 2s and 10s outperforming, relief rally in stocks after the minutes showed no discussion of larger rate hikes.
  • Eurodollar option trade mixed in June and short June quarterlies: early buying of some 12,500 June 98.31 calls at 1.0 and 16,500 June 98.18/98.25 put spds, while midcurves included a buy of 8,700 short Jun 96.50 puts at 2.5 and over 7,000 short Jun 97.00/97.12 call spds, 3.0 ref 96.86.
  • Treasury Options saw better buying in 5- and 10Y puts: 10,000 FVQ 107 puts at 1 and 10,000 TYN 115 puts at 2.
BulletMarketsFixed Income BulletsHomepage
BulletMarketsFixed Income BulletsHomepage

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.