MNI BRIEF:China Optimistic On Property Despite Investment Fall

MNI BRIEF: China Oct Retail Sales Surge On Holiday, Trade-ins

MNI: PBOC Net Injects CNY968.8 Bln via OMO Friday

CHINA OCT INDUSTRIAL OUTPUT +5.3% Y/Y VS MEDIAN +5.5% Y/Y: NBS

CHINA PBOC CONDUCTS CNY981 BLN VIA 7-DAY REVERSE REPOS FRI

MNI: PBOC Sets Yuan Parity Higher At 7.1992 Fri; +0.72% Y/Y

MNI: FRANCE OCT HICP +0.3% M/M, +1.6% Y/Y

MNI: UK Q3 GDP +0.1% Q/Q, +1% Y/Y

MNI: UK SEP TRADE BALANCE GBP -3.46BN

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

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

STIR: $-Bloc Markets Firmed Substantially Over The Past Week Led By The US

STIR
BulletMarketsFixed Income Bullets

In the $-bloc, rate expectations through July 2025 firmed over the past week, led by the U.S. with an 18bps increase. Canada followed with a 13bps rise, New Zealand at 12bps, and Australia at 5bps. 

  • Yesterday, US rates firmed after Chairman Powell's prepared remarks on the economy, delivered in Dallas, were released.
  • Chair Powell's speech contained several quotes that sounded similar to what he said at last week's press conference. As such, there is nothing really "new", but by the same token, there is nothing dovish here, which may help explain the hawkish market reaction.
  • "The economy is not sending any signals that we need to be in a hurry to lower rates. The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully. " Powell last week: "We think that the right way to find neutral, if you will, is carefully, patiently"... "Nothing in the economic data suggests that the Committee has any need to be in a hurry to get there." [to neutral]
  • Looking ahead to July 2025, the projected official rates and cumulative easing across the $-bloc are as follows: U.S. (FOMC): 4.03%, -60bps; Canada (BoC): 2.96%, -79bps; Australia (RBA): 4.08%, -24bps; and New Zealand (RBNZ): 3.55%, -120bps.

 

Keep reading...Show less
218 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.

In the $-bloc, rate expectations through July 2025 firmed over the past week, led by the U.S. with an 18bps increase. Canada followed with a 13bps rise, New Zealand at 12bps, and Australia at 5bps. 

  • Yesterday, US rates firmed after Chairman Powell's prepared remarks on the economy, delivered in Dallas, were released.
  • Chair Powell's speech contained several quotes that sounded similar to what he said at last week's press conference. As such, there is nothing really "new", but by the same token, there is nothing dovish here, which may help explain the hawkish market reaction.
  • "The economy is not sending any signals that we need to be in a hurry to lower rates. The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully. " Powell last week: "We think that the right way to find neutral, if you will, is carefully, patiently"... "Nothing in the economic data suggests that the Committee has any need to be in a hurry to get there." [to neutral]
  • Looking ahead to July 2025, the projected official rates and cumulative easing across the $-bloc are as follows: U.S. (FOMC): 4.03%, -60bps; Canada (BoC): 2.96%, -79bps; Australia (RBA): 4.08%, -24bps; and New Zealand (RBNZ): 3.55%, -120bps.

 

Keep reading...Show less