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CHF

USDCHF test another session low

CZECHIA

Economy Expands By 3.1% YoY in Q3

JPY

Another 100 pips range for USDJPY

FOREX

FX OPTION EXPIRY

US TSY FUTURES

US 5/30s and 2s/10s

US TSYS
US TSYS: T-Notes +0-01 at 131-01+ in early Asia. Contract went out just shy of
late highs, rallying in the wake of the latest FOMC decision, which saw the Fed
leave the Fed Funds target band unch., as it hiked the IOER & overnight reverse
repo rate by 5bp apiece. The Fed also tweaked its language re: inflation &
downgraded its assessment of household consumption. On the funding market front,
it noted that it would continue conducting term & overnight repo operations
through April to mitigate risks of money market disruptions (several Fed members
had previously outlined April as a potential period of stress for repo markets).
Powell noted that the Fed is trying to find an equilibrium in ample reserve
regime, and that there may be a place for repo ops after ample reserves are
reached. Powell also noted that "asset valuations are somewhat elevated."
Worries about the impact of Coronavirus on China's Q1 GDP resurfaced, with Fed
Chair Powell also providing some commentary on the matter in his presser. Yields
5.0-7.3bp lower come Wednesday's close, as the curve bull flattened.
- Pressure on U.S. equity futures post-Facebook earnings also helped the Tsy bid
late on, although equity futures have managed to edge higher after re-open.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com