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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.
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Free AccessJ.P.Morgan: Position For Narrower Spreads In 10-Year Sector
Late on Friday J.P.Morgan noted that “dynamics between MMFs and Reserves have an impact on swap spreads. Elevated RRP balances have the potential to alter the interest rate characteristic of deposits as banks may have to increase their deposit rate betas, and an increased deposit beta would result in diminished capacity for interest rate risk, and thus diminished bank demand for securities. Diminished bank demand for USTs should bias spreads narrower, and intermediate maturity spreads tend to narrow heading into the x-date.”
- Their subsequent recommendation to enter 10-Year swap spread narrowers came with 10-Year swap spreads trading at -29.2bp.
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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.