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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
The Australian market has taken the lead in pushing the $-Bloc STIR markets higher as the US approaches its Thanksgiving holiday.
- Expectations for the RBA’s terminal rate have firmed by 10bps since Monday. The most significant portion of this increase occurred today, in response to a relatively hawkish speech delivered by RBA Governor Bullock after-market yesterday.
- The Governor noted that the final stretch of reducing inflation to target will take longer than the initial leg (see this link). Additionally, she noted that “the remaining inflation challenge we are dealing with is increasingly homegrown and demand-driven…a more substantial monetary policy tightening is the right response to inflation that results from aggregate demand exceeding the economy’s potential to meet that demand”.
- In contrast, terminal rate expectations for Canada and New Zealand have remained unchanged. Meanwhile, in the US, these expectations have firmed by 3bps since Monday.
- Terminal rate expectations and the cumulative tightening currently stand at: 5.36%, +3bps (FOMC); 5.01%, +1bps (BOC); 4.52%, +20bps (RBA); and 5.54%, +4bps (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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