BOC WILL BE CONSDIERING FURTHER RATE CUTS

BOC DOESN'T SEE A RECESSION, RATHER SLOW GROWTH

BOC SAYS WEAKER CAD DRIVEN BY USD STRENGTH

MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

US EIA: CRUDE OIL STOCKS EX SPR -1.42M TO 422.0M DEC 06 WK

BOC CUTS RATE 50BPS TO 3.25%, SEES GRADUAL APPROACH FROM HERE

MNI: US NOV CPI 0.3%, CORE 0.3%; CPI Y/Y 2.7%, CORE Y/Y 3.3%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Short sterling under pressure again following CPI print

UK

The short sterling strip has opened lower this morning following the CPI data which came in three tenths above expectations. This follows up yesterday's labour market data which showed stronger payroll growth than expected in the first month after furlough ended.

  • The Dec21 contract has moved 1.5 ticks lower, with a December 15bp hike now pretty much fully priced.
  • Other Whites/Reds/Greens have moved 2.5-4.0 ticks lower at writing.
  • This means that markets are now pretty much fully pricing a February 25bp hike too, with Bank Rate above 1.25% by the end of 2021 and the terminal rate has also fallen with the Sep-23 contract now 98.475 (effectively pricing rates at 1.50%.
  • The inversion after this remain, with Sep23-Sep25 inverted by 27.5 ticks at the time of writing.
  • Gilts are due to open at 8:00GMT and we would expect a bear flattening of the curve this morning.
  • There's no other notable UK data or MPC speeches scheduled for today, so after digesting this data, UK markets will start to look at more external events - particularly commodity price moves.
HomepageBulletMarketsFixed Income BulletsForeign Exchange Bullets

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.