Swaps - USD
The strong bear steepening threw markets for a loop and sources wonder, what if any follow through, may come as the 10y rests at the 100-day MAVG.
USTs are bear steepening in the wake of yesterday’s FOMC meeting ahead of today’s $14bn 10y TIPS re-opening. BofA’s FOMC view.
The BOE and the Norges Bank added their cries to the hawks' chorus today. Banks give their reaction to the FOMC. Swap spreads are widerning
Powell gives an end date for tapering to mid next year. Sources wonder if the curve move has legs, considering the distance already covered.
‘Buy the dip’ has prevailed again as equities are moving higher while USTs are little changed ahead of today’s potentially hawkish FOMC, JPM believes.
USTs and swap spreads are little-changed while risky assets are firmer as the market waits to hear how the Fed will manage its balancing act.
USTs hovered as equities steadied. The 20y saw a record low dealer allocation, but only came at the offered side of the 1pm level. Spreads bandied.
Risk-off has moderated but equities and UST yields are off earlier highs. Spreads see back end receiving while IG supply returns. SG previews the 20y.
Banks, hedge funds and, most scarily, the rating agencies seem to agree that the fallout from Evergrande can be contained. ICE launches RFR indices.
Equities managed lift off the intraday lows into the close. Swap spreads tightened with receiving flows into the selloff, concentrated in the long end