There has been trade in mid sector AUD butterfly spreads. Governor Lowe has reiterated the RBA's QE options. Goldman issued a Kangaroo Bond.
A more hawkish than expected FOMC dot plot essentially sent all major asset classes lower with TIPS/BEs far from unscathed today.
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
Vols rose, somewhat tepidly, considering the delivered vol post-FOMC. ULC traded along with 2y10y. Earlier, a 5x7 wedge and a 30y accreter dealt.
RPI and supply news hit the inflation curve today. Nominals bull-flattened.
Implieds are mixed although some vega pieces, such as 5y5y, have resumed their descent.
The financial landscape remains in a literal holding pattern ahead of today’s FOMC decision where no fireworks are expected by sources/dealers.
Inflation was drifting into the red shortly before the FOMC today and chunky French supply tomorrow.
Traders and strategists await the Fed decision. Front FRA-OIS widens, Brevan increases its USD rates short and adds crypto.
Euro rates keep a tight range as the market awaits the FOMC decision.
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.
5y NDIRS saw receiving in earlier trading, as domestic data has missed expectations. 1s/5s NDIRS has steepened to a level that a correction is due.
Several issuers are looking to price across the 5y-15y sector in euros today. Another Century MTN emerges.
There has been cautious paying in JPY swaps after data from the US. The belly has been bid, and 2s/10s swaps are due to correct steeper.
AUD swap spreads have eased today but could correct higher on a post-roll adjustment. The RBA has outlined its QE options.
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.
A much stronger-than-expected May PPI print gave another point to Team Reflationista. BEs bull flattened as better TIPS/BE selling abated.
Gilt supply dominated today, with traders citing good demand for '28 and '51 gilts, ahead of a supply drought. Insurers eye a world after Solvency II.