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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.
BONDS
- Short sterling has seen the most interesting moves in core fixed income this morning. Markets continue to push forward the first hike and the hike to 0.50%. A 15bp hike is now priced around the end of the first quarter and a 25bp hike by the end of 2022. The biggest moves have been around the Sep22/Dec22 contracts, with the curve steepening up to that point and then flattening after. This continues the trend seen yesterday of markets pricing in fast hikes up to the 0.50% threshold when QE reinvestments will cease, with slower rate hikes after. Short sterling Blues for example are only 0.5bp lower on the day. In gilts, 2-year yields are 3.2bp higher on the day while 10-year yields 1.8bp higher as the curve bear flattens.
- Outside of continued reaction to yesterday's BoE, the US employment report will be the highlight later today. The UST curve has bear steepened. 10-year UST yields are up 1.5bp (not a million miles from the move in 10-year gilts) but 2-year UST yields are only up 0.6bp on the day.
- TY1 futures are down -0-5+ today at 134-10+ with 10y UST yields up 1.5bp at 1.239% and 2y yields up 0.6bp at 0.206%.
- Bund futures are down -0.14 today at 177.15 with 10y Bund yields up 0.6bp at -0.494% and Schatz yields up 0.5bp at -0.775%.
- Gilt futures are down -0.16 today at 130.07 with 10y yields up 1.7bp at 0.540% and 2y yields up 3.1bp at 0.119%.
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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