Free Trial

Fed Funds Look Through Russian Escalation

STIR FUTURES
  • Fed Funds futures pricing has hung onto yesterday’s sizeable increases as near-term meetings fully unwound the hit from headlines that included the potential of a full-scale Russian invasion of Ukraine within 48 hours, an concurrent cyber-attack on Ukraine and later CNN reporting that US intelligence officials believe 80% of Russian forces are in a “forward position ready to go”.
  • Mar 16 pricing sits at 34.5bps with a cumulative 93bps over the next three meetings, whilst pricing for 2022 sits off earlier highs of 163bps but is still 161bps.
  • MNI reported that the Fed’s upcoming projections are likely to show at least five hikes penciled in for this year (up from three in Dec) according to several former central bank staffers.

Fed Funds futures pricing for specific meetingsSource: Bloomberg

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.