Euro structured note issuance over the past week was led by bank and SSA callables.
The ECB hawks have so far been quiet with little sound of pushback against yesterday's market moves.
BEs decided that enough is enough and tapped themselves out of today’s central bank dovish fest with a modest pull-back.
Linkers almost matched today's peripheral-led ECB bond surge, leaving B/Es little-changed. Supply, positioning and reweighting were all in the mix.
Short-dated euro gamma was slammed lower after central bank meetings and a global fixed income rally.
The ECB hiked 50bps as expected and said it plans another 50bps in March. The Bund has built on earlier gains.
Hints from the BOE that sterling rates are near their peak helped global fixed income bull-steepen. But banks expect two more hikes from the Fed.
Traders eye the ECB meeting after the BOE hikes 50bps but hints at a peak. Some argue a hawkish ECB surprise is unlikely.
The broader markets manage to squeeze a dovish message out of today's FOMC decision/Powell presser, and BEs followed suit by ending modestly higher.
About 3/4 of economists expect the MPC to hike rates by 50bps tomorrow but a minority of pre-cogs look for the Bank to start slowing down.