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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
- There has been a generally positive mood to markets this morning helped by positive developments surrounding the COVID situation in Shangai (and more generally in China) as well as in Hong Kong. This has seen the Euribor and Eurodollar strips move down generally in the 3-5 tick range.
- The SONIA strip has seen larger moves following the better than expected UK labour market report. Whites, Reds and Greens are down generally 7.5-8.0 ticks. Markets now price in 31bp for June (3bp above Friday's close), 67bp by August (10bp above Friday's close), 88bp by September (up 10bp from Friday), 108bp by November (up 12bp from Friday) and 120bp by year-end (from 10bp from Friday). We still think that 50bp hikes look very unlikely, so think the market is looking overextended again.
- For the Fed, markets price a similar level to yesterday: 54bp for June, 102bp by July, 140bp by September and 191bp by year-end.
- Markets now price in around 23bp (cumulatively) for a July ECB hike, up from 21bp on Friday, 55bp is priced by September and 95bp is priced by year-end. This is all within a basis point of yesterday's pricing.
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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