Reply To: Traders Market Weekly: APR 3-9 — Yield Inversion & Inflation concerns

Helmholtz Watson

The ECB still posits that its first rate hike is unlikely to occur until sometime after it ends its asset purchase program in Q3, whereas the fed funds futures market is pricing in a 74.4% probability of a 50-basis points increase at the May FOMC meeting, according to the CME’s FedWatch Tool. That would take the target range for the fed funds rate to 0.75-1.00%.

Yield Check Midday:
2-yr: unch at 2.43%
3-yr: -1 bp to 2.61%
5-yr: unch at 2.55%
10-yr: +3 bps to 2.41%
30-yr: +5 bps to 2.47%