Daily Flows
- Yesterday, volume of QTC 2030 FRN was available for a brief period before being snapped up by Balance Sheet trading managers.
- Those that are looking to add Semi-Government floating exposure to their portfolio are having to be extremely reactive when opportunities arise in order not to miss out .
- There is secondary market liquidity for the recent Police bank issuance with active trading yesterday.
FOMC Minutes, Tarif Plans and Ceasefire Lebannon
- There was plenty for markets to digest in the last 24 hours with key data and geopolitical developments.
- Trump via his social media platform has stated he will put a 25% tariff on goods from Mexico & Canada and a 10% tariff on China goods, citing they will remain in place until there is a reduction in illegal immigration & drug trafficking.
- This foreign policy may be have inflationary effect on the United States as their short term supply chains coming out of tariffed countries may be challenged.
- This morning, FOMC minutes were released and went by with relatively little market reaction. There is support for a gradual approach to further easing given that the economy is proving resilient.
- As always, the board is driven by the data and is open to any possible cut or pause depending on the risk to inflation, the economy or labour market.
- A ceasefire between Israel and Hezbollah has been agreed with the United States and France mediating.
- Whilst conflict still rages in Gaza, President Biden hopes that this may end fighting in Gaza as well.