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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.
STIR FUTURES
- Hikes implied by FOMC-dated Fed Funds futures have climbed through the Q&A of Powell's testimony before trimming gains very recently.
- March pricing is pinned around the 25bp mark after Powell indicated continued support for it but there have been large moves further out.
- There are now nearly four consecutive 25bp hikes up to and including July (97bp from 88bp at Q&A start & today's low of 73bps) whilst getting closer to six hikes for 2022 again (141bps from 132bp at Q&A start & today's low of 111bp)
Comments have included:
- Appropriate for us to move ahead, inflation is too high. Need to move carefully and we will, willl be nimble.
- If inflation stays hot, we could hike 50bp at a meeting.
- Can't say Ukraine situation has reduced Fed appetite for rate increases. Financial system has enough liquidity to weather war.
- Supply-side constraints much more durable than expected.
- Market participants reacting appropriately to Fed.
Fed Funds futures implied hikes as of specific meetingsSource: 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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