8th December 2023

  • Bond Traders Racing Ahead of Fed Face Reality Check on Jobs Data

Treasury yields priced for an accelerating slowdown in hiring

Swaps indicate series of Fed cuts to 4% within 12 months

https://blinks.bloomberg.com/news/stories/S57I13DWX2PS

  • Fed’s Repo Backstop Gets Most Use Since 2020 Amid Funding Stress

Counterparties tapped facility for $203 million on Dec. 5

Rise comes after SOFR jumped to record high 5.39% on Dec. 1

https://blinks.bloomberg.com/news/stories/S59KYKDWX2PS

  • JPMorgan Sees Rates Rally Driving Single-Digit Returns for Bonds

Firm’s Steve Dulake expects lower defaults for corporate bonds

Potential volatility in Treasury market is his top concern

https://blinks.bloomberg.com/news/stories/S5BAUQDWX2PS

  • High-Yield Rally on Fed Optimism Sends Spreads to 19-Month Lows

Investors bet interest-rate hikes near done as inflation cools

Renewed demand for bonds fuels broad-based gains across sector

https://blinks.bloomberg.com/news/stories/S4SEYBT0AFB4

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