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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
A not-fully-priced-in 25bp (vs 50bp) hike delivered by the BoE Thursday saw terminal rate pricing dip sharply before recovering, while ECB peak pricing edged slightly higher.
- BoE terminal Bank Rate pricing -2.9bp to 5.78% (53bp of further hikes left in the cycle to Feb / Mar 2024): Peak pricing dipped to roughly 5.70% following the BoE decision, but recovered as markets digested the press conference's playing down of rate cut prospects. There's 22bp priced for the next meeting, with 38bp cumulatively through the next two MPC decisions.
- ECB terminal depo Rate pricing +2bp to 3.91% (16bp of further hikes left in the cycle to Dec 2023). ECB-tied rates closed higher, largely shrugging off the BoE decision. Market pricing implies an almost exact 33% probability of a 25bp raise at the September meeting, with 14bp priced through the next two meetings cumulatively.
Source: MNI, BBG
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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