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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.
US
- The slide in oil with a helping hand from the Empire State miss has helped the 5Y inflation breakeven fall 5.5bps today, with surprisingly little impact from a weak NAHB survey later on despite the potentially softer house price implications as builders cut prices to increase sales or limit cancellations.
- These inflation expectations have dominated the FI rally, with 5Y real yields creeping higher.
- The 5Y breakeven falls to 2.65%, back at levels closer to the fallout from the US CPI miss before a recent rise, although they remain 15bps above early July lows.
- The longer-term 5Y5Y breakeven unsurprisingly is less sensitive to latest moves but nevertheless drifts lower to 2.20% to circa 20bps above July lows as it remains more consistent with the 2% inflation target.
5Y breakeven (white), 5Y5Y breakeven (yellow) - showing mid and not ask prices - and WTI 1st (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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