EUROPEAN INFLATION: MNI Eurozone Inflation Preview - February 2025

MNI's Political Risk team has published its Week Ahead article looking at the major political risk events taking place globally over the coming seven days. Includes information on US President Donald Trump addressing GOP Representatives and the Senate continuing its confirmations process for cabinet picks; the EU unveiling its 'Competitiveness Compass'; and the UK Chancellor of the Exchequer speaking on the economy with a specific focus on planning reforms and how they might contribute to bolstering the UK growth outlook. 

Full article PDF attached below:

MNIPOLITICALRISK-WeekAhead27 Jan-2 Feb.pdf

Broader risk-sentiment continues to dominate. Core global FI markets have ticked away from session highs as e-minis find a bit of a pre-market base over the last couple of hours.

• Speculation linked to Chinese firm DeepSeek’s AI advancements continues to dominate discussions (details on feedthrough for chip capex, efficacy of sanctions on China and risks to U.S. tech dominance all getting some airtime).
• The 7- to 10-Year zone leads the rally on the U.S., German & UK curves, with Tsys outperforming given perceived risks to U.S. tech.
• Yields on the Tsy curve are 8-11bp lower. 1.5-3.0bp off lows. Benchmarks out to 20s registered fresh ’25 lows during the London morning rally.

• Secured Overnight Financing Rate (SOFR): 4.34% (-0.01), volume: $2.289T
• Broad General Collateral Rate (BGCR): 4.33% (-0.01), volume: $912B
• Tri-Party General Collateral Rate (TGCR): 4.33% (-0.01), volume: $875B
• (rate, volume levels reflect prior session)