US: FED Reverse Repo Operation
Jul-18 17:21
RRP usage inches up to $199.298B this afternoon from $193.660B yesterday, total number of counterparties at 36. Usage had fallen to $54.772B on Wednesday, April 16 -- lowest level since April 2021 - compares to July 1: $460.731B highest usage since December 31.
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STIR: 47bp Of Cuts Priced For 2025 With FOMC And Dot Plot At 1400ET
Jun-18 17:13
- Fed Funds implied rates are a little off session lows as we head within an hour of the FOMC decision.
- It has been helped by crude oil futures paring losses but WTI still -0.6% as near-term inflationary implications from the Israel-Iran conflict continue to set the tone for pricing for intraday moves in 2025 meetings.
- Cumulative cuts from 4.33% effective: 0bp for today, 3.5bp Jul, 19bp Sep, 30.5bp Oct and 47bp Dec.
- SOFR futures have flattened further today as growth concerns weigh further out the curve, with SFRZ5Z6 at -0.65 (-0.02) although it’s off session lows of -0.66.
- The SOFR implied terminal yield has pushed a quarter out, now seen landing in the H7. The yield of 3.23% is 5bp lower on the day, having last closed lower on Jun 4.
- Dot plot and projections watched. From the MNI Preview: “The new quarterly projections will still signal the resumption of rate cuts later this year, but likely only one 25bp reduction instead of the two cuts envisaged at the March meeting.”
- “While risks to both the Fed’s inflation and employment mandates remain elevated, with the new 2025 forecasts looking increasingly reflective of stagflation, the Committee should still signal rate cuts through end-2026 of a similar magnitude to its previous set of projections”
- https://media.marketnews.com/Fed_Prev_Jun2025_With_Analysts_a9c8a317ff.pdf
BOC SAYS CORE CPI INDEXES MAYBE DISTORTED, TREND MORE LIKE 2%
Jun-18 17:10
- BOC SAYS CORE CPI INDEXES MAYBE DISTORTED, TREND MORE LIKE 2%
- BOC TRACKING BROADER RANGE OF TREND INFLATION MEASURES
BOC SAYS RECENT SENTIMENT DATA REMAINS LOW BY ANY STANDARD
Jun-18 17:05
- BOC SAYS RECENT SENTIMENT DATA REMAINS LOW BY ANY STANDARD
