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Fed Funds Torn Between 25bp and 50bp In May

STIR FUTURES
  • Fed Funds futures pricing sits a little lower than yesterday’s highs on the ECB announcing it will slow asset purchases at a faster pace.
  • Next week remains pinned around a 25bp hike (26bp currently), with the market torn between a 25bp and 50bp hike at the May meeting (37bps).
  • Cumulative pricing further out sits at 91bps for June and 164bps for Dec.
  • The preliminary U.Mich consumer survey for March is the only data of note today with focus on the inflation expectations components after the long-run measure was trimmed a tenth to 3.0% in February.

FOMC-dated Fed Funds futures. Showing pricing for individual meetings with March (white), May (yellow) and June (green)Source: Bloomberg

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