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Fed Hike Path Waiting On Data

STIR FUTURES
  • Little change in Fed hike expectations overnight, hanging onto yesterday’s reversal of a further softening.
  • FOMC-dated Fed Funds price 52bp for Jun, 99bp for Jul, 133bp for Sep and 180bp to year-end, close to post-May FOMC lows for further out meetings.
  • No Fedspeak scheduled today with an eye instead on a range of data, including the core PCE deflator expected at an unchanged +0.3% M/M in April as the wedge between CPI of +0.57% M/M grows due to shelter and airfares strength.

Source: Bloomberg

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