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Fed Hike Expectations Gradually Trimmed

STIR FUTURES
  • Hikes implied by Fed Funds futures continue to fluctuate but remain on a slow downward trend this week.
  • There is still 50bps fully priced for May but expectations are shifting nearer to it being followed by a 50bp hike in June (104.5bp priced), back roughly where it was when Powell said he was putting a 50bp hike on the table for May.
  • Hikes to year-end soften slightly to 233bps.

Source: Bloomberg

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