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Fed 2023 Rate Expectations Hit New Highs

STIR FUTURES
  • Fed Funds implied hikes keep to 79.5-80bps for tomorrow’s meeting whilst the 4.24-25% implied for Dec’22 has drifted higher but just about keeps to Friday’s high.
  • New cycle highs further out, with a terminal 4.51% for Mar’23 and 4.09% for Dec’23 as both points have seen a parallel more than 50bp shift higher since just before US CPI.
  • Cuts are only seen late in 2023 though, with the first full 25bps from that 4.51% hitting in Nov’23.

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