FICC Focus Macro Matters: Central Banks With BE’s Wong, BI’s Worthington
11 snips
Mar 19, 2026 
Huw Worthington, European rates strategist at Bloomberg Intelligence, on central bank moves and UK yield swings. Anna Wong, chief U.S. economist at Bloomberg Economics, on Fed forecasts, inflation and labor risks. They debate oil's impact on inflation, shifts in Fed/BOE/ECB tones, market reactions in yields and TIPS, and scenarios from war outcomes to sustained $100+ oil.
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Powell Signals Mid-2026 Timing To Look Through Oil
- Jay Powell emphasized tariff and oil pass-through timing, saying tariff pass-through typically takes seven to 12 months.
- That implies the Fed may wait until mid-2026 before 'looking through' gasoline and oil shocks, delaying confidence for cuts.
Markets Rapidly Priced Out 2024 Rate Cuts
- Markets moved sharply to price out rate cuts after the Fed meeting, with SOFR pricing removing about 75bp of expected cuts.
- Ira Jersey notes two-year yields rose and SOFR now expects cuts much later, nearer late 2027 instead of 2024–25.
Inflation Hedges Drove Front-End TIPS Rally
- Front-end TIPS rallied as investors bought inflation hedges, pushing two- and five-year real yields down while long-end real yields rose.
- Ira links front-end break-evens higher to oil and long-end moves to supply concerns and expected issuance.