FXStreet (Barcelona) – Mark Chandler, Global Head of Currency Strategy at Brown Brothers Harriman, shares the US bond market performance post the release of the upbeat US nonfarm payrolls data.
Key Quotes
“US Treasuries have, as one would expected, sold off hard in response to the economic news. The 10-year yield is at 2.40%, new highs. The 2-year yield is up 7 bp at 73 bp. The December Fed funds contract now implies a yield of 37.5 bp, which would be the mid-point of a 25-50 bp target range, which would fully price in one hike by the Fed this year. The effective Fed funds rate has been steady in the middle of the current 0-25 bp range.”
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