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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
- Pricing of Fed hikes has ratcheted higher overnight, with Fed Funds showing 192bp of hikes for the remainder of this year (174bp prior to Powell yesterday and 160bp after last week’s FOMC).
- Immediate pricing has 42bps for May and 81.5bps for June, the latter implying a 61% chance of 100bp of hikes over the two meetings.
- GS overnight changed their Fed call to back-to-back 50bp hikes in May and June (from 25bp previously) whilst still starting balance sheet reduction in May, leaning on the shifting in wording from moving “steadily” to “expeditiously”.
- They see this followed by 25bp hikes at the four remaining meetings plus three quarterly hikes in 1Q-3Q23, leaving their terminal rate unchanged at 3-3.25%.
Fed Funds FOMC-dated implied rateSource: 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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