⚖️🔺Yields Rise Heading Into FOMC September Meeting: Cable FX Macro

**As seen in Macro Walk report 09/16/2022, subscribe at cablefxm.co.uk/reports

• U.S. Treasury 2-yr yields pushed higher by 31bps on the week to 3.87%, this is the highest it has been since 2008. The advances were led by the front-end of the curve, as the 10-yr yield increased by 14bps to 3.42%. The 2s10s curve inverted further by 17bp to -42bps, however it ended Friday session off lows of -46.5bps

• Last week, the docket saw U.S. core inflation rising faster than previous, this caused short-term yields to rise while it inverted the curve to the lowest since mid-August. The September FOMC meeting is now fully priced in for a 75bps move, while the odds of a rise of the same magnitude for November increased last week

• The rises in the front-end were also seen by more than 20bps in Australia, Switzerland and Germany curves. We have seen some desk repricing RBA last week after Governor Lowe's remarks.

• 30-yr yields fell in Canada, U.K., Germany, Switzerland, Italy and Japan. The largest moves were seen in BTPs and Canadian rates