Bond rallies persist while interest rate hikes may be postponed👀

However, the higher yield move would not be sustained. A continued short-squeeze in global fixed income saw a 15bp rally in UK bonds and decently well received auctions in the UK and Germany. Furthermore, dovish comments from Fed Governor Waller noted that they are "finally getting very good inflation [data]", and that the Fed is now in a position to "watch and see" on rate hikes. Following up on his dovish WSJ piece from Tuesday, Timiraos tweeted Waller's statement to suggest that the current rate move is similar to the pre-SVB yield run-off, and doing much of the financial conditions tightening work for the Fed already.

#macro #YieldMove #ShortSqueeze #FinancialConditions #WSJ