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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.
DATA REACT
- The sizeable beat in the composite PMI in Feb, up from 51.1 to 56.0 (cons 52.5), came as the service sector rebounded “especially impressively” following Omicron restrictions.
- There was though a more muted upturn in manufacturing where supply shortages continue to hamper production with a further large rise in backlogs.
- Price pressures are clear to see: input costs rose “yet again at another near-record pace” whilst “increasing numbers of companies sought to pass these higher costs on to customers” to push the largest increase in average prices charged on record.
- Having already increased 4bps on the day, Fed Funds pricing for Mar16 was little changed on the release as it firmed less than 0.5bps to 34bps. There’s a similar story in 5Y breakevens, up 0.5bps to 2.99% after already increasing 5bps earlier (white in chart) which has driven an even larger gap over 5y5y inflation expectations (yellow) in a sign of a potential greater overshoot.
5Y breakeven (white), 5y5y inflation swaps (yellow) and differential (green)Source: 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.
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