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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