Free Trial

Political uncertainty weighs; lower Fed terminal rate sees partial reversal

  • Political uncertainty has led to the SONIA strip moving up to 20 ticks lower today (the moves had been above 25 ticks earlier) with a steepening throughout the Whites. Markets have now pushed the terminal rate back to around 5.25% from being close to 5.00% yesterday.
  • Gilts have recovered off their lows, helped higher by Treasuries after a WSJ Nick Timaraos piece suggesting the Fed could slow the pace of hikes to 50bp from December. However, yields for short/medium-dated gilts remain at least 11bp higher on the day.
  • The 10s30s curve has further flattened today and is now inverted by around 2bp at writing.

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.