After a string of fed governors have come out this week hinting that a rate hike is due sooner rather than later, traders have been increasing bets on a hike at the March FOMC meeting. Probabilities hit 70% this morning according to fed fund futures pricing, while the prospect of higher rates has increased demand for dollars and sparked selling in shorter term treasuries.
US Benchmark Curve Current (orange) v Friday Close (purple):
European bourses were down a bit on profit taking while Asia closed up meaningfully overnight with the Nikkei posting a 0.9% gain on the back of strong gains in US indexes yesterday.
Eurozone data was generally upbeat:
More data due shortly:
It’s shaping up be an interesting day…