Techs Support 30Yr Bonds
INTEREST RATE MARKET FUTURES
Futures are higher across the board.
The Federal Reserve’s emergency lending jumped to almost $300 billion in the week ended Wednesday.
Financial futures markets are now suggesting the Federal Open Market Committee will hike its fed funds rate by 25 basis points at its policy meeting on March 22, and there is a smaller chance the central bank may make no change in interest rates.
Currently there is an 82% probability the FOMC will hike by 25 basis points and an 18% probability of no change in the fed funds rate.
The technicals and fundamentals for the June 30-year Treasury bond futures have become more supportive in the past two weeks.
STOCK INDEX FUTURES
Stock index futures are lower.
February industrial production was unchanged when up 0.4% was expected and capacity utilization was 78.0%, which compares to the anticipated 78.5%.
The 9:00 central time March consumer sentiment index is predicted to be 67.0, and the 9:00 February leading indicators index is estimated to show a decline of 0.2%.
Consumer price inflation in the euro area was confirmed at 8.5% year-on-year in February 2023, which was the lowest since May 2022.
The European Central Bank at its policy meeting yesterday increased its deposit rate by 50 basis points to 3.0% from 2.5%. Most analysts were predicting a 50 basis point hike with a minority expecting only a 25 basis point increase.
The Bank of England is seen hiking interest rates by 25 basis points on March 23. Some analysts believe this could be the last increase in this current policy tightening cycle.
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