Unlocking the Fed and ECB’s Interest Rate Decision

Published on 1 May 2023

North America

  • Equities volumes were high and bid-ask spreads were wide. Bond spreads improved week-on-week.
  • Earnings results include Qualcomm, BNP Paribas, HSBC, and Volkswagen.
  • Spotlight on the Fed’s May interest rate decision and more earnings results.
  • US axe data, which is within normal ranges, indicates a higher proportion of selling versus buying of credit.

Europe / UK

  • Equities volumes jumped mid-week and spreads are wide. Bond spreads are tighter week-on-week.
  • Bilateral and dark trading saw spikes in activity, suggesting traders moved off-exchange to source liquidity.
  • The Eurozone inflation rate Tuesday, unemployment data Wed, and the ECB’s interest rate decision on Thursday.
  • EU axe data, which is within normal ranges, suggests a slightly more substantial proportion of EU dealers buying versus selling credit.
  • GDP axe data, within normal ranges, suggests slightly higher net selling versus buying of credit.