⚖️🔻U.S. Front-End Rate Advantage Declines On The Week: Cable FX Macro

• The Cable FX Macro USD Spreads Index measures dollar front-end rate differentials vs G10 peers, the index can be studied from intraday to monthly time frames. Bloomberg clients can access index upon request, contact@cablefxm.co.uk

• Dollar rate differentials started the week choppy as the 2-year yield dropped to 5.05%, the move was faded and rates were offered after retail sales data proved economic resiliency in the U.S.

• The U.S. 2-year yield rose to levels not seen since 2006, the 10-year yield jumped to the highest since 2007. The latter underperformed as 2s10s steepened beyond -20 basis points, the 2s30s uninverted briefly for the first time since May

• Powell's speech on Thursday led to Fed swap pricing to pare bets of additional tightening. The front-end declined into the weekend and finish the period slightly lower.