MUFG Research discusses its expectations for today's FOMC minutes from the June meeting.
"The FOMC this evening provides another reason for caution on selling the US dollar from here. There will be a number of aspects market participants will be looking at in this evening’s minutes related to tapering timing; the DOTs profile and perhaps the reasoning for the 5bp tweak in the RRF," MUFG notes.
"The RRP usage is a function of the scale of liquidity and yields across the curve have been declining. Yes, the federal funds rate has increased from 0.06% to 0.10% but that’s what you would expect. Still, the FOMC minutes this evening will be closely looked at for any information surrounding the decision to raise the RRF rate by 5bps to 0.05%," MUFG adds.