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Fed Hike Expectations Fade On Continued Risk-Off

STIR FUTURES
  • Having proved resilient to yesterday’s risk-off pivot, Fed Funds implied hikes move lower on today’s continuation through the European session.
  • The 2x50bp hikes per broad FOMC member guidance remains in place (52bp Jun, 102bp Jul) with larger falls later in the year with 142bp for Sep (148bp high yday) and 193bp for Dec (201bp high yday).
  • Harker late yesterday joined another ‘23 voter in Evans in expecting 50bps at Jun and Jul meetings before a more measured pace thereafter.
  • The only scheduled appearance is from Kashkari (’23) at 1600ET.

Source: Bloomberg

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