MNI: UK NOV FINAL MANUF PMI 48.0 (FLASH 48.6); OCT 49.9

MNI: EUROZONE NOV FINAL MANUF PMI 45.2 (FLASH 45.2); OCT 46.0

MNI: GERMANY NOV FINAL MANUF PMI 43.0 (FLASH 43.2); OCT 43.0

MNI: PBOC Net Drains CNY216 Bln via OMO Monday

MNI: PBOC Sets Yuan Parity Lower At 7.1865 Mon; -1.50% Y/Y

MNI: China CFETS Yuan Index Up 0.01% In Week of Nov 29

MNI: EUROZONE OCT UNEMPLOYMENT RATE 6.3%

MNI: FRANCE NOV FINAL MANUF PMI 43.1 (FLASH 43.2); OCT 44.5

MNI: ITALY NOV MANUF PMI 44.5 (FCST 46.0); OCT 46.9

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

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

STIR: Goldman Recommend Hawkish SOFR Hedge Against Fed Underdelivering

STIR
BulletMarketsFixed Income Bullets

Late on Friday Goldman Sachs noted that the “payrolls print was too soft to instil a great deal of confidence that the labor market has found firmer footing, but didn’t quite rise to the level of decisive weakness that would clearly justify fully pricing a 50bp September cut.”

  • “The near-term risk to markets is that the FOMC as a whole isn’t quite there and more/weaker data would be needed to build a consensus on larger cuts.”
  • As a result, they continue to hold a 6m 2s5s curve cap spread recommendation, but also recommended adding a SFRZ4/Z5 bear flattener (buying SFRZ4 95.875 puts vs. 0QZ4 96.875 puts) to “protect against the risk that the Fed underdelivers on cut pricing in the near-term.”
119 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.

Late on Friday Goldman Sachs noted that the “payrolls print was too soft to instil a great deal of confidence that the labor market has found firmer footing, but didn’t quite rise to the level of decisive weakness that would clearly justify fully pricing a 50bp September cut.”

  • “The near-term risk to markets is that the FOMC as a whole isn’t quite there and more/weaker data would be needed to build a consensus on larger cuts.”
  • As a result, they continue to hold a 6m 2s5s curve cap spread recommendation, but also recommended adding a SFRZ4/Z5 bear flattener (buying SFRZ4 95.875 puts vs. 0QZ4 96.875 puts) to “protect against the risk that the Fed underdelivers on cut pricing in the near-term.”