Fixed Income Morning Economic Report, 7-20-26

Global fixed income markets are softening, and oil prices have pared their initial jumps as investors digest Esmail Baghaei's remarks that Tehran remains open to negotiations with the U.S. This slight cooling in geopolitical risk premiums follows a weekend escalation that saw two U.S. service members killed in Jordan and one in Iraq, prompting a ninth consecutive night of U.S. strikes.

USTs -5 ticks at 109-035 having been in a 109-00+ to 109-06 range while SFRZ6 is at 95.98 having been in a 95.96 to 95.98 range and implying a 76% chance of 2 hikes by the year end. Not much on the docket this week, given Fed officials are on blackout ahead of their policy meeting.

On the docket today(CT);

9:00 AM Leading Indicators 2:30 PM Federal Reserve Board of Governors closed meeting