USD: In the green against the majors

STIR futures are little moved this morning as the market awaits the FOMC decision later this evening.

• Eurodollar futures are 0.5-2.0 ticks down on the day. Markets are pricing around 78bp ahead of Wednesday's FOMC policy announcement with a cumulative 137bp priced for September and 181bp priced by the December meeting. Therefore the curve inverts somewhat with a first 25bp cut fully priced by September 2023.
• The SONIA futures curve is up to 4.5 ticks lower on the day, with the strip steepening through the Whites and then seeing a parallel move through the rest of the curve. Markets now price 46bp for next week's meeting with a cumulative 93bp priced by September and 155bp by year-end, with 174bp priced by February 2023, with the curve inverting thereafter.
• Moves have been more limited for the Euribor curve which is down up to 1 tick on the day. Markets price 43bp for the September meeting, 82bp by October and 109bp by year-end. The curve flattens from March 2023 onwards with a peak of around 120bp priced in.

• On offer today: E4bln of the 1.70% Aug-32 Bund (ISIN: DE0001102606)
• Market colour: 1.70% Aug-32 Bund yields rose to a high of 1.373% on July 21, after trading within the range of 1.069%-1.347% since its launch.
• 10-year Bund yields fell around 45bp over the last week to stand around 0.922% at the time of writing.
• Timing: Results will be available shortly after the auction closes at 1030 BST / 1130 CEST.

Auction history:

Similar past auctions: 0% Feb-32 Bund (ISIN: DE0001102580)