Central Bank Watch – Central Bank Collusion in Rate Hike Extravaganza

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  • #49324
    TradersCom
    Keymaster

    Bond Check ahead of FOMC: U.S. Treasuries trade with gains in most tenors while long bond remains still red

    Yields:
    2-yr: -3 bps to 4.18%
    3-yr: -4 bps to 3.91%
    5-yr: -4 bps to 3.61%
    10-yr: -2 bps to 3.49%
    30-yr: UNCH at 3.53%

    #49438
    TradersCom
    Keymaster

    Central Bank Collusion:

    Since yesterday’s Fed +50bps

    ECB +50bps
    Bank of England +50bps
    Swiss National Bank +50bps
    Banco de México +50bps
    Philippines +50bps
    Hong Kong Monetary Authority +50bps
    Norges Bank +25bps
    Taiwan +12.5%bps

    #49439
    TradersCom
    Keymaster

    U.S. Treasuries climbed on Thursday with longer tenors finishing ahead despite showing some relative weakness in the early going of the session.

    The Hong Kong Monetary Authority followed yesterday’s FOMC rate hike in customary fashion with a 50 bp increase of its own while the Bank of England, Swiss National Bank, and European Central Bank also raised their respective rates by 50 bps. Norges Bank also raised its policy rate, but only by 25 bps.

    Altogether, these rate increases served as a reminder of the building headwinds to global growth, which gave a boost to Treasuries and pressured stocks, sending the S&P 500 to a level not seen in five weeks with its 50-day moving average (3861.73) looming below.

    Treasuries added to their opening gains during the first few minutes of action but found resistance once longer tenors approached their morning highs from Tuesday. Mid-morning trade saw some light backtracking, but the market bounced near today’s starting levels with longer tenors rising to fresh highs in the early afternoon as stocks continued sliding.

    The late push briefly pressured the 30-yr yield past its low from Tuesday, but the advance was moderated during the final hour of trade.

    #49161
    TradersCom
    Keymaster

    It was a huge week for Bankers, we had the big central bank triple header, the Federal Reserve (Fed), Bank of England (BOE) and European Central Bank
    [See the full post at: Central Bank Watch – Central Bank Collusion in Rate Hike Extravaganza]

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