Free Trial

Yields Crank Higher Still On Russia-Ukraine Progress

US EURODLR FUTURES
  • Eurodollars are led by the green pack down as much as 12 ticks on Russia-Ukraine ceasefire prospects, broadly matching the belly-led sell-off in Treasuries.
  • Latest headlines centre around the newly proposed Ukrainian security guarantee system that would allow Ukraine to agree to neutral status, along with the Ukrainian side saying there is enough ground to hold a Zelensky-Putin meeting with some positivity reciprocated from the Russian side as well.
  • Fed hikes over 2022 have firmed closer towards yesterday’s highs with a further 216bp of hikes priced for this year.
  • However, this latest risk-on sentiment combined with recent supply side fears from China lockdowns, pushes implied yields higher for longer, even if yields are still seen peaking in the M3 contract with sizeable inversion thereafter.

To read the full story

Close

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.