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Ending Week With Further Trimming Of Fed Rate Cuts

STIR
  • Fed Funds implied rates are drawing to the end of the week with yesterday’s initial claims spike still weighing on pricing for next week’s FOMC but meetings later on in the year having clawed back the drop.
  • The further trimming of cuts sees just 24bp from July’s terminal to year-end and 38bp from July to Jan for the smallest since Mar 09 as rate cut expectations began to surge on regional banking woes.
  • Cumulative changes from current 5.08% effective: +7bp Jun (+0.5bp on the day), +20bp Jul (+0.5bp), +18.5bp Sep (+1.5bp), +9bp Nov (+2.5bp), -4bp Dec (+3.5bp) and -18bp Jan (+5bp).

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