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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 AccessMarket Snapshot: Post-Fed Risk-On Unwinds
- The tide has turned towards risk-off this afternoon as markets continue to digest last night’s fed decision amid stagflationary concerns.
- Initial optimism regarding Powell’s limited appetite for +75bp hikes has now faded and flipped to risk-off with US equities plummeting at the open.
- USD/ZAR has fully pared yesterday’s move lower and now trades +2.61% higher around 14.83 in line with softer global risk conditions. Given its high-beta nature, ZAR has traded in a volatile 4.91% range between 15.40 & 16.20 this week with 1m implied vols trading towards the upper end of their range YTD.
- SAGBs have also trimmed early bull flattening gains with 10-30Y tenors giving back 5-6bp in gains as UST yields move sharply higher at the US open. Both the 10 & 30Y failed to move below key support at 10.20 & 10.80 and will eye 10.40 & 1100 as the next major resistance levels.
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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.