September 12, 2024 04:42 GMT
STIR: $-Bloc Market Swings Are Slightly Mixed Over Past Week
STIR
STIR markets in the $-bloc showed mixed performances over the past week, with little change in year-end official rate expectations for Canada, Australia, and New Zealand.
- The US stood out as the exception, with year-end rate expectations rising by 7bps. This followed a higher-than-expected US Core CPI reading for August, which rose 0.281% due to a rebound in housing inflation, exceeding the 0.2% forecast. The annual rates for Headline and Core CPI were 2.5% and 3.2%, respectively.
- While the likelihood of a 50bp rate cut by the FOMC next week has diminished, markets still await Thursday's PPI and weekly jobless claims data.
- The December 2024 expectations and the cumulative easing across the $-bloc are as follows: 4.34%, -99bps (FOMC); 3.64%, -61bps (BoC); 4.16%, -18bps (RBA); and 4.47%, -78bps (RBNZ).
Figure 1: $-Bloc STIR (%)
![](https://media.marketnews.com/image_daa0e43763.png)
Source: MNI – Market News / Bloomberg
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