MNI: PBOC Net Drains CNY103.5 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1901 Fri; -2.13% Y/Y

MNI BRIEF: China's LPR Holds Steady In Dec

MNI: BANXICO CUTS RATES BY 25BPS TO 10.0% AS EXPECTED

MNI BRIEF: Fed To Expand SRF Around Year-End Market Pressures

MNI CNB WATCH: Rate Held At 4.0%; Inflation Rise 'Temporary'

MNI: US TSY TICS NET FLOWS IN OCT +$203.6B

EZ/UK Bond Supply Calendar: AS, UK, DE Auction on Jan 7

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

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

STIR: Fed Implied Rates Ease From Highs On Soft European PMIs

STIR
BulletMarketsFixed Income BulletsForeign Exchange Bullets
  • Fed Funds implied rates have been weighed by bleak flash Eurozone readings showing surprisingly weak service sector activity along with a broad miss for UK PMIs (with the Eurozone findings having the greater impact).
  • The Dec implied rate is 1bp lower, Mar 2bp lower and Jun 3bp lower. That is however after the Jun’25 implied rate closed at fresh cycle highs yesterday, marking just 50bp of cuts.
  • Cumulative cuts from 4.58% effective: 15bp Dec, 21bp Jan, 35bp Mar and 53bp June.
  • US flash PMIs for November are in focus today for a first look at activity and broader sentiment after the US election results.
  • When it comes to heavily weighted services figures, the PMI has directionally been poor relative to ISM services in recent months, with the PMI slipping from 55.7 in Aug to 55.0 Oct versus ISM services rising from 51.5 in Aug to 56.0 in Oct. The outright level has however been a useful indicator of continued robust strength in the services sector. 
165 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.
  • Fed Funds implied rates have been weighed by bleak flash Eurozone readings showing surprisingly weak service sector activity along with a broad miss for UK PMIs (with the Eurozone findings having the greater impact).
  • The Dec implied rate is 1bp lower, Mar 2bp lower and Jun 3bp lower. That is however after the Jun’25 implied rate closed at fresh cycle highs yesterday, marking just 50bp of cuts.
  • Cumulative cuts from 4.58% effective: 15bp Dec, 21bp Jan, 35bp Mar and 53bp June.
  • US flash PMIs for November are in focus today for a first look at activity and broader sentiment after the US election results.
  • When it comes to heavily weighted services figures, the PMI has directionally been poor relative to ISM services in recent months, with the PMI slipping from 55.7 in Aug to 55.0 Oct versus ISM services rising from 51.5 in Aug to 56.0 in Oct. The outright level has however been a useful indicator of continued robust strength in the services sector.