MNI: MNI INVITATION: Webcast with Fed's Alberto Musalem On Jan 13

You are invited to join an MNI Webcast with Alberto Musalem, President & CEO, Federal Reserve Bank of St Louis.

Details below:

• Speaker: Alberto Musalem, President & CEO, Federal Reserve Bank of St Louis.
• Topic of discussion: ‘U.S. Economy & Monetary Policy.’
• Date: Tuesday January 13 from 10am to 10:35ET; 3pm to 3:35pm GMT
• This event will be run as a Zoom Webinar and is a public, on-the-record event.

To register please go to: MNI Webcast Registration

ING remain wary of the risks of a further extension higher in EUR long end yields and swap rates, noting that “whilst the move up in rates happened sooner than we anticipated, we do think higher rates are justified from a structural perspective”.

• They flag that “the growth outlook for 2026 looks decent, whilst from a supply perspective we should also get more upward pressure. Germany’s funding announcement is likely next week and in January we expect plenty of frontloading of funding plans, both placing supply in focus for the coming weeks. In between, around EUR600bn of Dutch pension fund assets will transition to a new system, drastically reducing the amount of longer-dated swaps and bonds needed”.
• ING continue to argue that “the front end has little room to go higher for now, given more inflation data is needed before seriously contemplating a rate hike. The 10-Year swap rate, however, could still move higher as term premium builds. 2s10s is still relatively flat compared to the average of 80bp since 2000. One could also look at long-term nominal growth expectations as an anchor for longer rates. In that case, having the 10-Year swap rate settle around 3.0-3.5% would be considered fair value”.

• EUR/USD: $1.1585-90(E1.7bln), $1.1600(E755mln), $1.1675(E784mln), $1.1760(E1.3bln)
• EUR/GBP: Gbp0.8785-92(E530mln)
• AUD/USD: $0.6330-35(A$1.2bln)