STIR: Hawkish Extension In Fed Prices After ISM
Nov-05 15:22
The combination of a firmer-than-expected headline ISM services reading and prices paid sub-component (70.0) makes for an extension of the hawkish move in the USD front end.
- Note that the employment component remained in contractionary territory but wasn’t quite as soft as expected.
- Market now prices 16bp of easing for next month i.e. over 60% odds of a cut taking place, with a cumulative 24bp of easing showing through January, 31.5bp through March and 51.5bp through June.
- That compares to 17bp, 26bp, 35bp and 55bp ahead of the data.
- SOFR-implied terminal rate pricing moves to 3.13% vs. 3.09% seen ahead of the ADP employment release.
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OPTIONS: Expiries for Oct07 NY cut 1000ET (Source DTCC)
Oct-06 15:18
- EUR/USD: $1.1650-65(E2.2bln), $1.1695-10(E869mln), $1.1750(E1.3bln), $1.1820(E2.3bln)
- USD/JPY: Y149.25($667mln), Y149.75($811mln), Y150.00($747mln), Y150.60($525mln), Y151.00($776mln)
- AUD/USD: $0.6675-90(A$630mln)
FED: US TSY 13W AUCTION: NON-COMP BIDS $1.956 BLN FROM $84.000 BLN TOTAL
Oct-06 15:15
- US TSY 13W AUCTION: NON-COMP BIDS $1.956 BLN FROM $84.000 BLN TOTAL
FED: US TSY 26W AUCTION: NON-COMP BIDS $1.501 BLN FROM $75.000 BLN TOTAL
Oct-06 15:15
- US TSY 26W AUCTION: NON-COMP BIDS $1.501 BLN FROM $75.000 BLN TOTAL
