US Dollar (USD)
USDi: Fed’s hawkish tide sinks all boats, BEs included
A more hawkish than expected FOMC dot plot essentially sent all major asset classes lower with TIPS/BEs far from unscathed today.
USD Swaps: Belly crashes in post-FOMC; Long end spreads f...
The FOMC did what CPI could not, with a substantial repricing in the belly of the curve, sending 2s5s30s to new highs for the year. Spreads widened
USD Vol: Vols tick up post-FOMC; 5x7 wedge; Accreter
Vols rose, somewhat tepidly, considering the delivered vol post-FOMC. ULC traded along with 2y10y. Earlier, a 5x7 wedge and a 30y accreter dealt.
USD Swaps: Holding pattern ahead of FOMC; No fireworks ex...
The financial landscape remains in a literal holding pattern ahead of today’s FOMC decision where no fireworks are expected by sources/dealers.
USD Swaps: Fed wait; Brevan stays short, grows, adds crypto
Traders and strategists await the Fed decision. Front FRA-OIS widens, Brevan increases its USD rates short and adds crypto.
BOE-FCA find near 100% support for 'SOFR First' as flows ...
The BOE-FCA today encouraged liquidity providers to switch to 'SOFR First' from July 26 after a survey found almost 100% support for the move.
USD Vol: Intermediate vols see sellers after small firming
Intermediate vols in 10y tails from 1y10y to 5y10y saw selling this afternoon as a light bid this morning was sold, on possible clean up activity.
USDi: Team Reflationista scores PPI points; TIPS/BE selli...
A much stronger-than-expected May PPI print gave another point to Team Reflationista. BEs bull flattened as better TIPS/BE selling abated.
USD Swaps: USTs a tad softer; Bearish into FOMC?
USTs remain a tad softer in the wake of today’s strong PPI print and JP Morgan favors leaning bearish USTs into tomorrow’s FOMC.
USD MTNs: UBS dual CMS; Barclays ZC Formosa
Structured note activity slowed down amid the underlying squeezy rally in USTs. ZCs included a large Barclays Formosa, late to the screens.