Free Trial
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.
STIR
Over the past week or so, market expectations regarding terminal interest rates in the $-bloc have exhibited a modest softening trend, with the exception of Australia.
- In the case of Australia, terminal rate expectations have experienced a decline of approximately 12bps since late September, aligning them with the US in assigning a roughly 50% probability to another 25bp rate hike.
- In contrast, Canada and New Zealand continue to exhibit a markedly different stance, as they maintain a nearly full pricing of one additional 25bp rate hike.
- Terminal rate expectations and the cumulative tightening currently stand at: 5.45%, +12bps (FOMC); 5.22%, +22bps (BoC); 4.22%, +15bps (RBA); and 5.73%, +23bps (RBNZ).
Figure 1: $-Bloc STIR: Terminal Rate Expectations & June’24 Pricing
Source: MNI – Market News / Bloomberg
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok