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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
Market expectations for terminal interest rates in the $-bloc have generally softened over the past week, with one notable exception being Australia.
- Canada stands out as the top performer, experiencing a 15bps softening in anticipation of the upcoming BOC policy decision this week. This shift in sentiment can be predominantly attributed to the September CPI figure that fell short of expectations last week.
- NZ has been the second-best performer, displaying an 8bps softening, which can also be linked to a CPI data shortfall.
- In contrast, the RBA-dated OIS pricing has shown a 12bps firming over the past week in anticipation of the Q3 CPI data release scheduled for Wednesday.
- Terminal rate expectations and the cumulative tightening currently stand at: 5.41%, +8bps (FOMC); 5.09%, +17bps (BOC); 4.34%, +27bps (RBA); and 5.63%, +13bps (RBNZ).
Figure 1: $-Bloc STIR
Source: MNI – Market News / 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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