MNI: US PINCH UPDATE: With heightened global.........>

MNI: US PINCH UPDATE: With heightened global economic uncertainty and the

Federal Reserve stuck in a holding pattern, money markets remain in a state of

flux. The 1-year forward curve is relatively flat with MNI PINCH attributing

just a 6.8% probability of a Fed Funds cut in October, with the market starting

to price in a cut for December. Market pressure has subsided on the back of a

recovery in equities and inflation breakevens, but printed inflation has started

to roll over, external headwinds (US-China trade dispute, Brexit and Eurozone

growth) are intensifying, and Republicans and Democrats remain at loggerheads

over the funding of President Trump's border wall. A resolution to the trade

spat with China and a compromise on government spending would go a long way to

revive market expectations for further policy rate hikes this year. 

Please see: http://marketnews-m.objects.xtenit.com/MNI_PINCH_Update.pdf