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Following on from my potential trade idea yesterday, at 54 basis points (or 0.54%) the yield is the highest since May 2011. Anyone wanting to know what is underpinning the moves in the USD of late should look here.
Fixed income traders are clearly positioning themselves for an end of QE from the Fed in October; however I feel some are also expecting more hawkish rhetoric from the Federal Reserve in tonight’s (04:00 AEST) central bank meeting.
It’s worth highlighting that while the Fed meeting will be key, US Q2 GDP (+3%yoy) and ADP private payrolls are also released in upcoming trade.