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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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- Nearer-term market inflation expectations have seen wide ranges today, with the 2Y breakeven 2.54-2.81% but holding 2.66% over the past hour for -17bps on the day. It continues a slide lower from a high of 3.41% the day before Powell opened the door to a 50bp hike at next week’s FOMC.
- The 5Y breakeven is also down 10bps on the day at 2.34% vs a pre-Powell high of 2.8%.
- However, looking much further out, the 5Y5Y has actually pushed higher on the day and in trend terms keeps to the circa 2.20% it has held since early 2021 aside from flaring higher to 2.5-2.6% in the first few months of the Ukraine war. In doing so it shows little sign of the decline seen in prior slowdowns after lows of 1.5% in 2016 and sustained lows early in the pandemic era of 1.5% (the latter quite volatile).
2Y (white), 5Y (yellow) and 5Y5Y forward (green)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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