MEXICO: Banxico Trim Growth Forecasts, Central Bank Economist Survey Expected
Mar-02 12:33
- Within the latest quarterly inflation report, released on Wednesday, Mexico’s central bank trimmed its economic growth forecasts for this year and next. Banxico now estimate that GDP will expand 1.6% in 2023, according to the main scenario, which is below the 1.8% seen in the previous report, which was published Nov. 30. For 2024, it forecasts growth of 1.8%, down from 2.1%.
- Speaking at the quarterly report presentation, Deputy Governor Irene Espinosa stated she would prefer not to surprise the market with the following decisions and instead wants to guide it in the “right direction”.
- “The decision to surprise was not easy, and it’s not something we want to repeat. For that reason, I think our prospective guide should be extremely cautious,” Espinosa said.
- At 1500GMT/1000ET: Central Bank Economist Survey
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
PIPELINE: $1.25B CABEI 3Y SOFR Launched
Jan-31 12:26
- Date $MM Issuer (Priced *, Launch #)
- 01/31 $1.25B #CABEI 3Y SOFR+120
- $10.45B Priced Monday
- 01/30 $3.25B *IBM $850M 3Y +60, $1B 5Y +85, $750M 10Y +120, $650M 30Y +145
- 01/30 $2.6B *Elevance Health $500M 3NC1 +97, $1B 10Y +122, $1.1B 30Y +147
- 01/30 $1.1B *Charter Comm's 8NC3 7.375%
- 01/30 $900M *Codelco 10Y +158
- 01/30 $850M *Bank of New Zealand 5Y +118
- 01/30 $750M *Synchrony Financial 10Y +375
- 01/30 $500M *Constellation Brands 3NC1 +110
- 01/30 $500M *Tyco Electronics 3Y +60
- 01/30 $Benchmark Pemex investor calls
US EURODLR FUTURES: Post-LIBOR Settle Update: Implied Hike Holds Steady
Jan-31 12:06
Lead quarterly Mar'23 (EDH3) gains 0.010 to 95.01 after 3M LIBOR set' holds steady at 4.81357% (-0.01172/wk).
- Fed funds implied hike for Feb'23 steady at 26.4bp, Mar'23 cumulative 46.9bp to 4.798%, May'23 57.9bp to 4.908%, terminal at 4.92% in Jun'23-Jul'23.
- Balance of Eurodollar Whites (EDM3-EDZ3) +0.005, Reds (EDH4-EDZ4) +0.025-0.050, Greens through Golds (EDH5-EDZ7) +0.045-0.030.
- Current deferred spds vs. prior settles:
- Jun'23/Sep'23: steady at -0.070
- Mar'23/Red Mar'24: -0.755 vs. -0.735
- Jun'23/Red Jun'24: -1.300 vs. -1.270
- Option recap: Rather muted volumes Monday covered mixed wing buyers (SOFR call and put flys, 5-, 10- and 30Y wings pared, vol buyers via strangles) ahead this Wed's FOMC policy annc (25bp hike widely anticipated).
CANADA: USDCAD Opens Key Short-Term Resistance
Jan-31 12:05
- An earlier continuation of yesterday’s USD bid sees USDCAD at 1.3455 off session highs of 1.3472.
- The push higher through European hours cleared resistance at the 20-day EMA to next open the key short-term level of 1.3521 (Jan 19 high).
- Solid expiry at today’s cut meanwhile, $1.2bln at 1.3400.
- CAD sits mid-pack of majors, outperforming other high growth beta peers despite a further rolling over of WTI as it continues its very weak relationship with crude of late, but lagging other majors.
