| 2016-10-17 10:45:02|
10:45 10/17 10/17/16
Euro$ interest rate futures are ticking higher
Euro$ interest rate futures are ticking higher as yields settle back down from last week's highs and stocks rotate lower after gyrations overnight. After Fed Chair Yellen discussed more aggressive policy options longer-term last week, dove Rosengren over the weekend continued to opt for moving rates higher sooner and heading off a jobless plunge and inflation rebound. Fed VC Fischer is on tap at midday and may well lean toward the Rosengren view. Yet, the December 2016 contract is 1.5-ticks firmer near 99.08 (0.92% implied 3-month yield), while the deferred contracts are 1.5-3.0 ticks firmer out the curve. The Fed won't want to add any more volatility around the election in November, but markets are still bracing for a December move.