STIR: Dovish Fed Repricing Extends On NFPs, Over 65bp Of Cuts Priced Through Dec
Sep-05 12:48
Dovish adjustments in Fed pricing on the back of the softer-than-expected labour market report, with 26bp of easing priced into FOMC-dated OIS for this month, 45bp showing through October and 68.5bp priced through year-end.
- That compares to 24.5bp, 40bp and 62bp ahead of the data.
- Dec FOMC pricing hits the most dovish level seen since August 14.
- SOFR-implied terminal rate pricing shifts to 2.83% vs. 2.92% ahead of the BLS flagging technical issues and 2.90% pre-data.
- That terminal rate pricing is taken from SFRH7 at present. The contract trades at the highest level seen since the tariff-induced spike in early April.
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US: Trump To Make Announcement About Apple Today
Aug-06 12:48
"*TRUMP TO MAKE ANNOUNCEMENT ABOUT APPLE TODAY: WHITE HOUSE" - bbg
- Trump is set to make an announcement at 1630ET today - but the topic wasn't specified and was speculated to potentially cover: Russia sanctions, or nominees for Fed governor or BLS head. That may now not be the case. We reported late yesterday: "U.S. President Donald Trump said Tuesday he will pick a new Federal Reserve governor by the end of the week and again named National Economic Council Director Kevin Hassett and former Fed Governor Kevin Warsh as contenders."
BONDS: Bonds and Rates Futures are recovering from the lows
Aug-06 12:45
- Some small momentum buying in the past few minutes in Wider Bond futures, but in also in rates in the likes of the Euribor, and the US SFR front strip.
- While the early long end supply weighted into the longer end Govies pre Auction in Germany, US Investors will be focussing on the US 10 supply later Today given the lack of Data for the Session.
- Worth keeping an eye on UK Govies, there's likely been some interest in buying dips, and some small Fast Money positioning ahead of the BoE cut Tomorrow.
- The 4.50% provided the support this Week in the 10yr UK Yield, printed a 4.496% low on Tuesday and a 92.84 high in Futures.
- As noted on that day for Gilts, further out sees 4.45% (93.21), followed by 4.40% (93.68).
SONIA OPTIONS: SFIQ5 96.15/96.20 Call Spread Lifted
Aug-06 12:43
Recent trade in the SFIQ5 96.15/96.20 call spread saw paper pay 1.0 on 7K.
