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Free AccessFed Hike Expectations Pull Back In European Hours
- Fed hike expectations have dipped through European hours on broader risk-off moves, with FOMC-dated Fed Fund futures slipping from a high of 219bp overnight to 214bp.
- There was a similar move in front-end Tsy yields, with 2YY moving off new highs of 2.49% to sit at 2.45%, in turn trimming inversion after both 2s10s and 5s30s touched new lows on open.
- Immediate meetings are more subdued, with 45.5bps for May (as much of last week) and 89bp for June (seen after payrolls was in line, removing a potential obstacle for aggressive hikes).
- Little of note scheduled for today with only finalised durable goods at 1000ET. Brainard kickstarts the week’s Fedspeak tomorrow.
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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.