Rates move higher
April 18, 2022
–No relief for longs in rate futures. On Thursday the ten year yield rose 11.7 bps to 2.804%, with TYM settling 119-30. This morning TYM prints 119-20 with the cash yield moving ever closer to 3% (now 2.86%). 2/10 spread and other curve measures continued a furious rebound, with 2/10 ending Thursday at 37 bps, having printed negative 5.5 at the start of the month. April treasury options expire Friday, with TYJ 120 straddle settling 1’06.
–Equity futures are lower following Thursday’s monthly option expiration. Commodities are generally higher, with gold again tickling $2000/oz and May Wheat up 20 cents at 1116. April bitcoin future is at a new recent low, just under 39000. Yen made fresh 20 year lows, even as Kuroda’s comments today caused a brief bounce. $/yen hit 126.79 before Kuroda; the yen is nearly 10% lower vs USD than it was in the beginning of March.
–Bullard speaks this afternoon. Beige book is Wednesday.
