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Retracing ISM Impact But Still See Sizeable Climb In Yields

US EURODLR FUTURES
  • EDs are off session lows to limit the reaction to the ISM services beat to just 1.5-3 ticks lower across white to green packs.
  • It keeps to a relatively narrow range for EDZ2 (currently -0.02) but with increasingly large declines thereafter (EDZ3 -0.11, EDZ4 -0.145) as 2023 rates and beyond recalibrate higher again. Peak yields seen in EDH3 with EDH3/EDZ3 rising 7.5 ticks to -0.30.
  • Daly earlier noted the aim to hike rates and hold whilst not seeing a rate cut in 2023, whilst another ’24 voter in Bostic discusses inflation at 1600ET before a heavier speaking schedule tomorrow including Governors Cook and Waller.

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