Fixed Income Morning Economic Report, 7-10-26

Good morning and happy Friday,

Overall, fixed income markets are firmer in reaction to the modest but increasing pullback seen in the energy space overnight and as JGBs lead on domestic updates. USTs currently trading 109-09 and got to a 109-12 peak(with a low of 109-04+) in the early morning, as energy hit a low and the JGB-driven move topped out. The front end of the curve isn’t so excited, with SFRZ6 trading down 0.50bp at 95.975 having been in a 95.99 to 95.97 range and implying a 54% chance of two hikes before the year end. Since, newsflow has been particularly light with the market essentially waiting for a resumption of negotiations or strikes, though as is often the case we might not get clarity on the next step until the weekend. So, Happy Friday and c'mon England!

on the docket today; 2:00PM WCQF Spain Vs Belgium