The inflation data and the FOMC were unequivocally dovish. The long end traded in sync with these results with 30s up 23 ticks on the week. The short end, however, marched to different tune with 2s down 1 tick on the week. I do not believe the discount rate rumors are...
There is little to talk about before 2:15 so I’ll keep this brief. The key focus for the market is on a Bullard (and possibly a Warsh) dissent. I think these are very remote possibilities. Let’s start with Bullard - he has been talking about a recovery that is “on...
Hopefully, everyone has copy of the new monthly. As discussed in that document, we see the next 3 months as calm for fixed income. Nonetheless, we will no doubt have some “in range fireworks” as we did last week. Over the last 5 trading days, we went from 2.78 to 2.83...
Brian Sack (aka mini-Ben) gave a speech last night reiterating the basic exit structure put forth by the Chairman in February. There was little new in the speech, but there are a few parts worth repeating here as we enter the battle zone on asset sales between the...
It’s a calm start to the week with 10s firmly in the middle of a very tight long term range - 3.60/3.80. “Roll adjusted”, 5s30s is starting the week at the all-time highs of 231 and 2s10s is about 5bps off its record highs at 281. I see very little on the immediate...
It’s a calm start to the week with 10s firmly in the middle of a very tight long term range - 3.60/3.80. “Roll adjusted”, 5s30s is starting the week at the all-time highs of 231 and 2s10s is about 5bps off its record highs at 281. I see very little on the immediate horizon to […]
