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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.
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The sharp rise in yields immediately post-payrolls was led by real yields, with inflation breakevens also making up ground lost since Powell's comments yesterday.
- Decomposing the 10-Yr nominal yield move +6bps at one point: 10-Yr real yields up ~4bps) and B/Es up ~ 2bps. Indicative of stronger economic outlook, higher inflation, and tighter Fed policy in light of stronger-than-expected jobs data.
- That said, real yields have now fully reversed the knee-jerk move (bringing nominal yields back below 1.60%) though breakevens are holding their gains. We'll see how it settles down but that's the opposite of the move during Powell's commentary when real yields kept rising and breakevens faded. Perhaps suggesting this time that the market believes the Fed could go a little bit more dovish after all?
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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.
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