Reply To: Market Wrap – Punters Paradise as Futures React with Extreme Volatility After Fed Raises 75 bp June 14, 2022


Treasuries Bounce Ahead of FOMC

U.S. Treasuries are on track for a firmly higher start after their recent string of sharp losses. Treasury futures began climbing shortly after yesterday’s cash close, continuing their advance into the night. The rally found some resistance at the start of the European session, but the past couple hours have seen a push to fresh highs.

The gains in U.S. Treasuries have coincided with a rally in European debt after it was reported that the European Central Bank is holding an emergency meeting today to discuss ways of dealing with fragmentation in the eurozone.

FOMC is expected to announce a 75-bps rate hike at 14:00 ET.
The greenback is under pressure after the U.S. Dollar Index hit a fresh high for the year during yesterday’s session.
The U.S. Dollar Index is down 0.6% at 104.91, on track to snap a five-day streak.

Yield Check:
2-yr: -12 bps to 3.32%
3-yr: -14 bps to 3.45%
5-yr: -13 bps to 3.47%
10-yr: -11 bps to 3.37%
30-yr: -7 bps to 3.36%