FRANKFURT (Dow Jones) — The Bund future will go down significantly on Thursday. The prospect that the US Federal Reserve could raise interest rates a little more slowly, but for longer, provides the selling point. On the market side, the interest rate peak for US key interest rates is now expected in May 2023 at around 5.10 percent.
For the market strategists at Helaba, the Bank of England’s dilemma appears to be even greater than that of the US Federal Reserve. The economic prospects there are gloomier and yet the monetary authorities have no other choice in view of the high inflation monetary policy to tighten. At noon they are likely to raise the base rate from 2.25 percent more quickly than before by probably 75 basis points.
The December Bund futures contract loses 111 ticks to 137.02 percent. The daily high so far is 138.07 percent and the daily low is 136.98 percent. To date, 38,130 contracts have been implemented. The Bobl futures is reduced by 59 ticks to 118.95 percent.
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DJG/thl/ros
(END) Dow Jones Newswires
November 03, 2022 03:39 ET (07:39 GMT)