Free Trial

Marginal Increase In Fed Rates After Biden Withdrawal and PBOC Rate Cut

STIR
  • Fed Funds implied rates are unchanged for July and September meetings and beyond that just 0.5bp higher in an extension of Friday’s increase.
  • The PBOC surprisingly cutting its seven-day reverse repo rate is one factor at play whilst investors continue to grapple with implications from Biden ending his re-election campaign.
  • Cumulative cuts from 5.33% effective: 1bp Jul, 25bp Sep, 40bp Nov, 62bp Dec and 79bp Jan.
  • It follows last week’s almost clean sweep of stronger than expected data but one that was overshadowed by the prior week’s CPI/PPI plus Powell’s comments on greater dual mandate progress.
  • Ahead of today’s particularly light docket with the FOMC in media blackout, see the latest macro recaphere.

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.