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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
STIR FUTURES
- Hikes implied by Fed Funds futures stepped higher overnight and through the London morning having initially been largely stable on Powell’s IMF panel comments yesterday.
- There is now close to 4x50bp hikes followed by 2x25bp hikes fully priced for the six meetings left this year. Specifically, 52-53bp priced for the May meeting, 110bp for Jun, 157bp for Jul, 197bp for Sep (four meetings) and 250bp to year-end.
- Powell officially put 50bp on the table for May and when asked if it’s reasonable for the market to price 3x50bps he said the markets are reacting appropriately generally. The Fed no longer counts on help from supply-side healing to bring inflation down, hence wanting to move expeditiously to neutral and see if need to above that once there.
- No Fedspeak set for today but potential for unscheduled appearances ahead of media blackout at midnight.
Cumulative hikes implied by FOMC-dated Fed Funds futures (%pts)Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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