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Fed Hike Pricing Cools After Bullish Asia Session

STIR FUTURES
  • Implied hikes are close to levels from late yesterday, having climbed higher overnight through both dovish BoJ commentary and a surprise RBA 50bp hike before cooling through European hours.
  • FOMC-dated Fed Funds sit at 51bp for Jun, 102bp for Jul, 143bp for Sep and 200bps to year-end, the later off 204bp overnight in what was a new post-May FOMC high.
  • FOMC media blackout but Tsy Sec Yellen to appear at the Senate FY’23 Budget hearing at 1000ET.

Cumulative hikes implied by FOMC-dated Fed Funds futuresSource: Bloomberg

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