TEST, PLEASE IGNORE

MNI BRIEF: Fed's Williams Still Sees Rate Cuts This Year

MNI China Daily Summary: Monday, April 15

MNI: PBOC Sets Yuan Parity Higher At 7.0979 Mon; -4.90% Y/Y

MNI China Press Digest April 15: A-Shares, Exports, Property

MNI: PBOC Conducts CNY100 Bln MLF Mon; Rates Unchanged

EZ/UK Bond Supply Calendar: Dutch DDA, gilts, RFGBs Due Tuesday

Bundesbank Weekly Activity Index Drops To 5-Month Low

EZ/UK T-Bill Calendar: Spain, ESM Auction on Tuesday

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Second Round Weak PMIs Tempers Forward Rate Hike Guidance

US TSYS
Tsys trade higher after the bell -- well off midmorning highs to near middle of the session range.
  • Not much of a reaction after 229k weekly claims, 1.315M continuing claims slightly above estimates, 226k and 1.312M respectively, Tsy ylds continued to ease (30YY slipped to 3.1438% low in the first half) after second consecutive set of weak PMIs:
    • Mfg: 52.4 vs expected 56.0 and last of 57.0
    • Services: 51.6 vs expected 53.3 and last of 53.4
    • Comp: 51.2 vs expected 53.0 and last of 53.6
  • Meanwhile, Fed speakers bang on about another 75bp hike in July (Fed Gov Bowman, w/ additional 50bp hikes by year end) -- a temporary silver lining for stocks as the economic slow-down (still not good news) quells further rate hike pricing by year end. Indeed, markets started to price in rate cuts by early-mid 2023.
  • SPX eminis futures ESU2 currently +19.5 (0.41%) at 3782.25 vs. 3797.25 high. DJIA +29.11 (0.1%) at 30509.55; Nasdaq +109.4 (1%) at 11162.19.
  • Eurodollar futures anticipated repricing earlier: near term recession expectations remain as futures inversion crept forward: Dec'22 currently trading 96.24 vs. Mar'23 at 96.28, w/ EDH3/EDH4 at -48.5. Interpretation: Since Wed's Senate testimony from Fed Chair Powell, futures pricing END of rate hikes has migrated from mid-2023 to end of this year. Pricing fluid as markets contend with ongoing slowdown.
BulletMarketsFixed Income BulletsHomepage
BulletMarketsFixed Income BulletsHomepage

To read the full story

Close

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.