EGB SYNDICATION: Ireland 10-year Jun-36 : Priced

January FOMC-dated OIS moves to price nearly ~7bp of easing alongside the downtick in wider core global FI yields.

• Implied rates for that event are 2bp lower vs. prevailing levels seen ahead of last week’s FOMC.
• This comes after the language and communique that accompanied last week’s Fed rate cut wasn’t quite as hawkish as the market expected.
• Late on Friday UBS wrote “despite unusual uncertainty surrounding US data and aggregate FOMC preferences, we see value in receiving the January FOMC meeting ahead of the Oct/Nov release of jobs and CPI data. Just 5.3bp of easing is currently priced and we would target a move to 13bp”. UBS expects “slightly negative average monthly job growth in Q4 and a moderate increase in core CPI in December”.

0NZ6 97.00/50 call spread vs. 96.00/95.50 put spread paper paid -0.25 on 10K for the call spread.

• The BMA has released a statement ( here ) noting that resident doctors have rejected the government's offer and will continue with their planned strike from 7:00GMT on 17 December for 5 full days.
• This had been out to ballot and there were hopes the strike would be called off given the offer from the govt and the rising flu cases in the UK.
• It is likely to have a small downward impact on UK December GDP / services output.
• Bigger picture the outturn of the vote (83% still in favour of striking with 65% turnout) suggests that the government is going to find it difficult to agree a deal with doctors without increasing pay further (after large pay rises seen in recent years) and incurring a large fiscal cost.
• Given the size of the gap between the sides, there may well be more strikes in the new year, too.