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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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Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessPost-LIBOR Settle Update: Dec Step-Down Expectations Steady
Lead quarterly Dec'22 (EDZ2) bounces +0.0075 to 95.0175 high after latest 3M LIBOR set' recedes -0.01057 to 4.66486% (+0.05872/wk).
- Dec step-down expectations steady as Fed funds implied hike for Dec'22 holds at 50.9bp, Feb'23 cumulative 87.9bp to 4.732%, terminal back over 5% at 5.015% in Jun'23 -- getting near pre-CPI 5.08% after hawkish comments from StL Fed Bullard early Thu.
- Balance of Whites (EDH3-EDU3) -0.020-0.040, Reds through Golds (EDZ3-EDU7) currently -0.055-0.040, Reds underperforming. Deferred spds off Thu's lows:
- Jun'23/Sep'23 -0.190 vs. -0.240 early Thu;
- Dec'22/Red Dec'23 at -0.210 vs. -0.360,
- Mar'23/Red Mar'24 at -0.810 vs. -0.935,
- Jun'23/Red Jun'24 at -1.165 vs. -1.295 prior cycle low.
- Inversion flattens out in early Blues: EDZ5-EDH6 +0.005.
- Thursday option roundup: Downside insurance buyers via puts, absent since the Oct CPI miss renewed hopes for rate hike step-down in December into early 2023 (and eventually revitalizing talk of rate cuts later next year), are seeing a comeback on today's sell-off in Eurodollar and SOFR futures: Reds (Dec'23-Sep'24) -0.120-0.140.
To read the full story
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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.