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Data Leaves 95bp Of '24 Fed Cuts Priced

STIR

Firmer-than-expected retail sales and lower-than-expected weekly jobless claims data drives another round of hawkish repricing in the U.S. short end as recession fears ebb further.

  • Fed Fund futures show ~32bp of cuits for the Sep FOMC vs. 36bp into the data, which equates to a ~28% chance of a 50bp cut next month.
  • Meanwhile, Dec FOMC pricing moves to ~95bp of cuts vs. ~105bp ahead of the data.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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