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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.
FED
- Barkin (’24 voter) sees risk of stopping rate hikes too early and allowing inflation to ‘fester’ as being greater than from overtightening.
- Latest PCE data consistent with “broad-based and persistent inflation”.
- Most points broadly consistent with other Fed commentary but, depending on the context, the headline that “inflation seen as an episode, not a regime change” could somewhat go against Powell’s suggestion the economy may be entering a new normal post-pandemic.
- Real rates continued to receive attention, wanting the Fed to keep them positive across the Treasury curve. That has certainly been the case with real yields surging further this week, including the 10Y up 28bps to 1.59% this week alone to post-2008 highs, and a primary driver of tumbling inflation breakevens – chart below.
Real yields for 5Y (pink) and 10Y (red)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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