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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
- Fed Funds implied hikes see a modest extension of yesterday’s large one directional increase through the US session especially further out into 2023.
- The 77.5bp for Nov 2 is little changed this week but beyond, showing 144.5bp to 4.53% for Dec’22, with a terminal 5% in May’23 (+7bp from 0600ET yesterday) and 4.70% for Dec’23 (+12bp).
- Ahead: Harker (’23 voter) discusses econ outlook with text at 1200ET whilst Governors Jefferson, Cook and Bowman are speaking at a careers event or giving opening remarks.
- Recap of latest from Bullard and Evans:
- Bullard (’22): Won’t prejudge what rate move he backs at Dec meeting but could opt to move 2023 tightening into 2022. Have to react if inflation doesn’t fall as forecast but also see possibility of good inflation dynamics in ’23. Fed shouldn’t react to declines in stock market.
- Evans (’23): Hopeful hikes shown in Fed Sept dot plot will be enough, Fed honing in on appropriate level of restrictiveness. Sees reasons inflation should improve before too long but risks to inflation are to the upside.
FOMC-dated Fed Funds implied rates 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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