MNI BRIEF: US Existing Home Sales Rise 2.2% To 4.24M In Dec

MNI: US JAN FLASH MANUF PMI 50.1 (FCST: 49.8); DEC 49.4

STATSCAN REVISES DEC EMPLOYMENT +0.9% OR +179K TO 20.9M

MNI China Daily Summary: Friday, January 24

MNI BRIEF: China Electricity Growth Expected At 6% In 2025

MNI:PBOC Net Drains CNY795Bn Via MLF; Injects CNY179Bn Repo

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL JAN INDEX 71.1

MNI: US NAR: DEC EXISTING HOME SALES 4.24M SAAR

EZ/UK T-Bill Calendar: 13/26/48/52-Week BTF Auction on Monday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

STIR: Up to 43bp Of Fed Cuts For 2025 On Services PMI Miss And U.Mich

STIR
BulletMarketsFixed Income BulletsForeign Exchange Bullets
  • Fed Funds futures have seen a further 2bp of cuts added to 2025 on the combination of flash PMIs and U.Mich, to stand at 43bp of cuts for the year.
  • There had been more cuts seen overnight and also earlier this week but it’s still towards the end high for the month to date.
  • Cumulative cuts from 4.33% effective: 0.5bp Jan, 7bp Mar, 13.5bp May, 25bp Jun, 29.5bp Jul and 43bp Dec.
  • The services PMI saw a large miss (52.8 vs cons 56.5) but some stronger forward-looking aspects and price pressures (highest in four months) had appeared to help offset a sizeable portion of the initial move.
  • Dovish momentum resumed with the U.Mich survey as consumer sentiment was revised lower and long-term inflation expectations were revised lower as expected, with the reaction to it only credible if seen as removing potential hawkish surprise, including for an unrevised reading at what had been its highest since 2008.
image
153 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 futures have seen a further 2bp of cuts added to 2025 on the combination of flash PMIs and U.Mich, to stand at 43bp of cuts for the year.
  • There had been more cuts seen overnight and also earlier this week but it’s still towards the end high for the month to date.
  • Cumulative cuts from 4.33% effective: 0.5bp Jan, 7bp Mar, 13.5bp May, 25bp Jun, 29.5bp Jul and 43bp Dec.
  • The services PMI saw a large miss (52.8 vs cons 56.5) but some stronger forward-looking aspects and price pressures (highest in four months) had appeared to help offset a sizeable portion of the initial move.
  • Dovish momentum resumed with the U.Mich survey as consumer sentiment was revised lower and long-term inflation expectations were revised lower as expected, with the reaction to it only credible if seen as removing potential hawkish surprise, including for an unrevised reading at what had been its highest since 2008.
image