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Fed Hike Expectations Helped Higher By German Regional CPI

STIR FUTURES
  • Fed Funds implied hikes take their cue from strong German regional inflation and ECB commentary, nudging higher from yesterday’s intraday recovery but still well off Monday highs.
  • 68bps for Nov (+0.5bp) and rates of 4.22% for Dec’22 (+2.5bp), 4.49% for Mar’23 (+5bp) and 4.28% for Dec’23 (+7bp). Monday US session highs of 4.75% for the terminal and 4.52% for Dec’23.
  • Fedspeak: Starts with Mester (’22) on CNBC at 0800ET before again with ECB’s Lane at 1300ET, along with Bullard (’22) and Daly (’24).

FOMC-dated Fed Funds futures implied rates at specific meetingsSource: Bloomberg

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