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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
- June FRA/OIS sees a second 5+bps increase on the day at 21.5bps (+6bp), nudging 1.5bp higher since the Libor fix, having held at a very low 11-13bps through late Feb until yesterday before SVB concerns came to the fore.
- It’s at highs since Dec’22 but remains off 2022 highs of 35bps from August after continued funding stress following the Fed’s shift to a 75bp hiking pace in June which it continued for four meetings up to and including Nov.
- The potential for funding stress is also being felt in cross-currency basis swaps, with 12m ESTR/SOFR swaps dropping as much as 4.5bps on the day to -25bps. This is a considerable shift and the biggest one-day down-move since early June last year. This puts USD funding costs at their highest level relative to the EUR since mid-January.
June Fra/OIS spread (white) and 12M ESTR/SOFR spread (yellow)Source: 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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