JGB TECHS: (U6) Trading Close To Resistance

• Immediate upside for the greenback as the FOMC is increasingly inclined to raise interest rates later this year, with nearly half of the FOMC pencilling in higher borrowing costs before the end of the year. The DXY is operating with around 0.4% gains on the session, with EURUSD sinking to 1.1550.
• Sharp downward pressure for precious metals is standing out, with spot gold now approaching $4,300 from prior levels of $4,380. The higher yields and downside for equities keeps the likes of SEK and NZD as the weakest currencies in G10, while the emerging market FX basket is getting hit.
  As a reminder for the DXY, recovery highs are located at 100.31, and above here the focus is on a cluster of resistance between 100.50/65.

• Still fluid moves after the sharp sell-off but 2Y yields currently nearly 8bp higher on the day, all of which has come since the release.
• The session’s flattening has extended abruptly, with 2s10s at 33bp (-6bp) for fresh flats since Apr 2025.
• TYU6 ~10 ticks lower than pre-decision levels, currently at 109-19 via a low of 109-15+.
• It fully reverses Monday’s gap higher after weekend US-Iran agreement headlines.
• Still some way from support though at 108-25 (Jun 8 low) before the bear trigger at 108-08+ (May 19 low). 

Below is a comparison of June's FOMC statement vs April's - the latest is extremely redacted from the previous one, removing a substantial amount of the language that was, in part, redundant anyway.

• It also removes all forward guidance on rates - as anticipated - while giving a brief discussion of current economic conditions, seemingly emphasizing that inflation remains elevated.
• And it promises that "The Committee will deliver price stability."
• In short, a throwback to the short statements of the Greenspan Fed era, reflecting new Chair Warsh's commitment to streamlining communications.