Fed speak is getting more hawkish - ANZ

Research Team at ANZ, notes that the Fed speak is getting more hawkish and this time it was from the Fed’s Williams (made on Friday morning AEST), which was the main talking points for markets to end the week.

Key Quotes

“Williams noted that the September meeting is “in play” and that some views in the market that the Fed will be on hold for a prolonged period are not consistent with the message the Fed has been giving. The OIS market now sees the odds of a September rate hike at 25%, up from 17% at the start of the week.

On Friday, US yields rose 2-4bps across the curve, with similar moves seen in Europe. Equites had a softer end to the week, with the Euro Stoxx finishing down 0.9% and the S&P 500 closing down 0.1%. The USD was generally firmer, while in commodities oil was unchanged and the CRB index finished down 0.3%.”