Free Trial

Fed Dec Pricing Leans Closer To 50bp Post House Price Declines

STIR FUTURES
  • FOMC-dated OIS for the Dec meeting continues to dip, now 2bps lower since larger than expected declines in house prices back in Aug.
  • With a cumulative 135-135.5bp following the 76.5bp priced for next week, it starts to lean slightly more towards a 50bp over 75bp hike in Dec.
  • It pushes implied hikes back towards most recent lows after Friday’s WSJ story on the potential stepdown and relatively more dovish comments from Daly.

FOMC-dated OIS implied cumulative hikes with Dec meetingSource: Bloomberg

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.