Free Trial

SocGen: Markets Price RBA Rate Cut Too Soon, Pay Dec ’24 RBA Vs. Receive 2y1y

STIR

Societe Generale like “fading RBA cut pricing for 2024 but keep protection around tail risks via paying December ‘24 RBA vs receiving 2y1y.”

  • They argue that “RBA signalling continues to suggest that easing is unlikely this year. Risks from the U.S., reflected in the deep cuts priced into SOFR, plus a cyclical slowdown, are keeping the RBA rate cut pricing elevated.”
61 words

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.

Societe Generale like “fading RBA cut pricing for 2024 but keep protection around tail risks via paying December ‘24 RBA vs receiving 2y1y.”

  • They argue that “RBA signalling continues to suggest that easing is unlikely this year. Risks from the U.S., reflected in the deep cuts priced into SOFR, plus a cyclical slowdown, are keeping the RBA rate cut pricing elevated.”