Free Trial

Bostic Helps Remove Small Amount Of Fed Rate Cut Pricing

STIR

Late Thursday comments from Atlanta Fed President Bostic (’24 voter) have helped remove a modest amount of the rate cut pricing embedded into U.S. STIR markets.

  • A reminder that Bostic noted that he isn’t thoroughly convinced inflation is on track to meeting target & will need to see continuing evidence of ebbing price pressures.
  • Some spill-over from firmer-than-expected UK retail sales data will have had a very modest impact in pre-NY trade.
  • Still, the major FOMC-dated OIS markers remain within their recent ranges.
  • Mar ’24 FOMC: ~1.5bp of cuts, little changed on the day.
  • Jun ’24 FOMC: ~26.0bp of cuts vs. 27.5bp at yesterday’s close.
  • Dec ’24 FOMC: ~91.5bp of cuts vs 94.0bp at yesterday’s close.
  • PPI, UoM sentiment survey (watch inflation expectations), building permits and housing starts will cross in NY hours.
  • We will also get Fedspeak from Barr (permanent voter), Daly (’24 voter) & Barkin (’24 voter).
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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.