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Fed Funds Emerge From Weekend Largely Unscathed

STIR FUTURES
  • FOMC-dated Fed Funds futures are back near late Friday levels, with implied hikes opening lower overnight before firming again as European inflation expectations increased sharply on higher energy prices.
  • There is just under one hike fully priced for March (23bp), a little over three hikes for June (80bps) but not quite four to July (95bp) and a touch over 5.5 hikes for 2022 (140bp).
  • Very light data slate today with the next major known driver US CPI on Thursday and the ECB decision shortly beforehand.

Source: Bloomberg

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