• Meanwhile in markets, the first post-FOMC meeting batch of Fed-speakers isn’t trying to out-hawk Chair Powell, resulting in some reprieve for bonds and equities. Predictably, the dollar is softer while the commodity rally gives our central bank overlords no reprieve from their inflation predicament.
  • The 10y US Treasury yield remains range-bound, trading at the middle of what is starting to be trading band at 1.70-1.90. Following the repricing in the wake of last week’s FOMC meeting bombshell, the curve remains very flat, with just 60bps of spread between the 2y and 10y yields. Further up the curve, less important yield spreads are close the inversion (7y10y). OIS forwards remain inverted, a strong signal that the market believes that Fed rate hikes will flip the Treasury curve too.

For hte full report, click here