Swaps - USD
The upper end of the rate range has continued to be breached, blasting long end rates and forwards higher. $3.4bn priced in IG from Yankee FIGs.
Just over $16bn priced in IG new issuance over the past week (ex-SSA) – on the lower end of forecasts. A similar amount is expected for this week.
Global fixed income has bear-steepened today, while strategists at BofA find recent price action in long-end euros to be puzzling.
A weekend of hawkish contemplation followed a week in which rising oil prices threaten more upwards pressure on inflation helped UST yields soar.
The nascent early bid in USTs has persisted into the afternoon amid a govt shutdown threat and UAW strike. BofA sees rates up until equities drop.
The UST market was looking to drift higher in yield overnight until European PMIs turned the tide. Traders eye steepening.
Long end yields pulled higher as bond markets adjusted to a softer landing outlook and higher yields for longer. Barclays closes out its 2y short.
USTs have flipped steeper as longer tenors reel from the lingering fallout after yesterday’s FOMC decision. 10y TIPS auction views.
Front end yields popped higher after the Fed left rates unchanged, but signaled another hike in 2023. The 2y note yield hit the highest level in 17ys.
After hitting multi-decade highs yesterday, UST yields are retracing lower in a move underpinned by Gilts. BofA connects the FOMC dots to the 10y.