Free Trial
USDCAD TECHS

Remains Vulnerable

AUDUSD TECHS

Northbound

US TSYS

Late SOFR/Eurodollar/Treasury Option Roundup

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Fed Terminal Cools On Brainard

STIR FUTURES
  • Fed-dated OIS trimmed very slightly for Dec on Brainard comments at 53bp ("probably appropriate soon to move to a slower pace"), still up 1bp from post-CPI close on Thursday.
  • Terminal rate expectations are more mixed but on balance are currently 1bp lower at 4.93% (despite "but have additional work to do both on raising rates and showing sustaining restraint to bring inflation down over time"), for still up 4bp from Thu close, helped by a more hawkish Waller over the weekend.
  • Coming after the initial reaction, Brainard doesn't really push back against the idea of rate cuts next year, instead focusing her answer on two-sided risks as get into restrictive territory.

FOMC-dated OIS implied hike in Dec (white) and terminal rate in Jun (yellow)Source: Bloomberg

150 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • Fed-dated OIS trimmed very slightly for Dec on Brainard comments at 53bp ("probably appropriate soon to move to a slower pace"), still up 1bp from post-CPI close on Thursday.
  • Terminal rate expectations are more mixed but on balance are currently 1bp lower at 4.93% (despite "but have additional work to do both on raising rates and showing sustaining restraint to bring inflation down over time"), for still up 4bp from Thu close, helped by a more hawkish Waller over the weekend.
  • Coming after the initial reaction, Brainard doesn't really push back against the idea of rate cuts next year, instead focusing her answer on two-sided risks as get into restrictive territory.

FOMC-dated OIS implied hike in Dec (white) and terminal rate in Jun (yellow)Source: Bloomberg