CORRECTED-MNI: Fed's Hammack-Near Or At Time To Slow Rate Cuts

MNI BRIEF: Fed's Goolsbee Sees Rates Fair Bit Lower In A Year

CANADA JOBLESS RATE +6.8% VS FORECAST +6.6%, PRIOR +6.5%

MNI China Daily Summary: Friday, December 6

MNI: PBOC Net Drains CNY288.1 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1848 Fri; -1.64% Y/Y

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

EZ/UK Bond Supply Calendar: Austria, UK Auction on Tuesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

BofA Recommends Two-Year Inflation Breakevens

MEXICO
  • Bank of America says that the market is underestimating inflation risks in Mexico and expects inflation to remain well above target over the next two years, with the headline rate staying above 5% this year, according to Bloomberg. Given this view, they recommend buying two-year inflation breakevens in the country.
  • BofA analysts note that the combination of shocks to non-core inflation and recent pressure on the exchange rate against a backdrop of unanchored inflation expectations and sticky services inflation makes the convergence of inflation to target challenging. In addition, they note that a dovish surprise from Banxico later could result in a repricing of inflation expectations.
  • As a reminder, Banxico will make its interest rate announcement at 2000BST(1500ET), with the decision looking to be finely balanced. A very narrow majority on the Bloomberg survey (15/29 analysts) expects a 25bp cut to 10.75%, with the rest forecasting no change. The decision comes after slightly-higher-than-expected CPI data earlier, but amidst a continued recovery in the peso today, with USDMXN now broadly unchanged on the week.
EM BulletHomepagemarkets-real-timeBulletEmerging Market News
EM BulletHomepagemarkets-real-timeBulletEmerging Market News

To read the full story

Close

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.