⚖️🔺 Post-FOMC Rates Underperformance Steepens Curve: Cable FX Macro

• We're now one week from the September FOMC monetary policy meeting. The committee skipped a rate hike, while Powell held to its "higher for longer" rhetoric

• Since the Fed meeting, we have seen the U.S. Treasury curve steepen, 10-year yields jumped to multi-year highs, a 20.4bps rise to 4.613%. The amount of steepening sent the 2s10s curve spread to the highest since mid-May

• Front-end rates have outperformed since the Fed, the 2-year tenor sees a decline of 4.5bps, last at 5.134%