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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 FUTURES
There has been some divergence in STIR markets this morning.
- The Euribor curve has moved higher this morning with Reds up to 13 ticks higher, but similar moves seen across Whites, Reds and Greens. Unlike Eurodollar and SONIA markets, there is no inversion in the Euribor curve, at least through Blues. Markets continue to price 27bp for a July ECB hike, 73bp (cumulatively) by September and 130bp by year-end.
- SONIA futures have lagged Euribor futures, with Whites/Reds moving off the lows seen earlier and now generally flat to 2.5 ticks higher on the day. This underperformance follows expectations of potentially looser fiscal policy with Sunak no longer Chancellor, and comments from BOE's Cunliffe earlier that the Bank needed to act on inflation (he had been seen as a dove and one of the most likely to stop voting for rate hikes). There is still a notable inversion in the curve after the Mar-23 contract. Markets price 44bp for the August meeting, 89bp cumulatively by September, 126bp by November and 152bp by year-end.
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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