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A Further Minor Trimming Of 2H23 Fed Rate Cuts

STIR FUTURES
  • Fed Funds implied hikes for near-term meetings are little changed from last week’s tight range but continue to trim 2H23 cuts to now 42bps from the peak to end-2023 vs the 45-50bp of recent days.
  • 25.5bp for Wed’s decision (unch), cumulative 47bp for Mar (+0.5bp), 59bp to 4.92% terminal in Jun (+0.5bp) before 4.49% Dec (+2.5bp).

FOMC-dated Fed Funds futures implied rates at specific meetingsSource: Bloomberg

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