Free Trial
USDCAD TECHS

Remains Vulnerable

AUDUSD TECHS

Northbound

US TSYS

Late SOFR/Eurodollar/Treasury Option Roundup

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Post-LIBOR Settle Update: 3M Rebound

US EURODLR FUTURES

Lead quarterly Dec'22 (EDZ2) dips -0.010 to 94.875 after latest 3M LIBOR set' rebounds +0.03114 to 4.35800% -- just off last Fri's 14Y high of 4.35843% after Mon's lower set.

  • A 75bp hike at Nov FOMC remains a lock, while pricing another 75bp in Dec continues to ease off last week's lvls after SF Fed Daly voiced concern over tightening monetary policy too much last Friday.
  • Balance of Whites (EDH3-EDU3) trade +0.005-0.020, Reds (EDZ3-EDU4) +0.035-0.060, Greens through Golds (EDZ4-EDU7) +0.065-0.075.
  • Current inversions: Mar'23/Jun'23 -0.060; Dec'22/Red Dec'23 at -0.325, Mar'23/Red Mar'24 at -0.640. Inversion flattens out in Blue Dec'25-Blue Mar'26 trading 96.040.
  • Option positioning: Pick-up in upside call trade following Fri's strong rebound in 2s-10s amid speculation over a 75bps hike at year end (WSJ/Timiraos) underscored by midday comments from SF Fed Daly (FOMC needs to start considering a slowing the pace of interest rate hikes in order to avoid tightening monetary policy too much).

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.