BOJ hikes. FOMC today
July 31, 2024
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–FOMC today. While no move is expected until Sept, attached chart of SFRU4/SFRH5 six-month calendar made a new low settle of -81. SFRU4/U5 new low settle -131.5. So forward easing expectations are strengthening. Sept FOMC is on the 18th.
–Treasury releases composition of auction issuance today. Yields eased yesterday, with tens -3.5 bps to 4.141%, TYU4 settled 111-18, nearing the strike of peak open interest in TYU calls, namely the 112 c which settled 34/64s with 40 delta, open interest of 198k following last week’s heavy buys.
–BOJ hiked to 0.25%. $/yen sank to 150.50 having been as high as 162 earlier in the month.
–MSFT crushed on post-close earnings report, but major indexes higher this morning, apparently as a result of the weaker USD. META releases today. CORRECTION from yesterday: I said AMZN and NVDA released Thursday but it’s AAPL rather than NVDA.
–JOLTs much stronger than expected yesterday, but according to this article on ZeroHedge it’s due to government hiring:
“Putting it all together, while private sector job openings plunged to a level seen back in late 2018, government job openings are just shy of a record high!”
