Free Trial

Near-Term Fed Pricing Back To Monday Levels After Week's Swings

  • Expectations for upcoming FOMC meetings are finishing the week marginally higher than where they started with 54.5bp for June and a cumulative 103bps priced for July, having oscillated between 96-106bps.
  • However, despite Powell and Mester opening the prospects for larger than 50bp hikes further out if inflation doesn’t improve, hikes to year-end sit softer at 192bps.
  • The main data developments were the CPI beat although PPI and non-oil import prices both showed a faster than expected moderation in April and U.Mich consumer sentiment continued its downtrend in May.
  • Ahead: Williams and Empire Fed on Monday before Powell and retail sales on Tue.

Cumulative hikes priced by FOMC-dated Fed Funds futuresSource: Bloomberg

To read the full story



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.