4 Apr 2014
Non Farm Payrolls leads the way for US Rates - Danske Bank
FXStreet (Barcelona) - Kasper Kirkegaard, Chief Analyst at Danske Bank comments that the non-farm release is crucial for today’s sentiment.
Key Quotes
“A decent report of around 200,000 and a decline in the unemployment rate (our expectation) should lead to further upside risks to US rates as the market can buy further into the weather rebound story.”
“In particular, the 2-5Y segment of the curve is at risk, as there is still room to price in a more aggressive path for the Fed funds future – for instance, the Fed funds future for Dec ’16 is still 25bp below the median of the FOMC projections for the Fed funds rate.”
Key Quotes
“A decent report of around 200,000 and a decline in the unemployment rate (our expectation) should lead to further upside risks to US rates as the market can buy further into the weather rebound story.”
“In particular, the 2-5Y segment of the curve is at risk, as there is still room to price in a more aggressive path for the Fed funds future – for instance, the Fed funds future for Dec ’16 is still 25bp below the median of the FOMC projections for the Fed funds rate.”