Free Trial

Fed Inversion Re-Widens, Pre-Blackout Fedspeak Eyed

  • Fed Funds implied hikes holding yesterday’s gain for the Sept FOMC (72bps, +0.5bp), with BNP latest to join the 75bp view with a 25bp increase in terminal to 3.5-3.75%.
  • Pricing cools further out, with 148bps to 3.80% (-1bp) for Dec and 159bps to terminal 3.91% (-2bp) in Mar’23 before widening inversion with 3.51% (-6bps) for Dec’23.
  • Key Fedspeak from Governor Waller and George (’22) separately at 1200ET. Evans at 1000ET unlikely of note after yesterday saw topping out at 4% “before too long” before pausing.

FOMC-dated Fed Funds implied September hike (white) and rates at specific meetings thereafterSource: Bloomberg

To read the full story



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.