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Fed Hikes Firm Back To Friday Highs

  • Fed Funds implied hikes have continued to firm through European hours, helped earlier by ECB’s Villeroy pushing back against EUR weakness, back to Friday’s highs: 54bps for Jun, 103bps for July and 191bp to year-end over five meetings.
  • Only NY Fed’s Williams (voter) scheduled today at 0855ET with likely housing-focused remarks at a MBA discussion. Focus likely ahead on six different speakers tomorrow, including Powell’s WSJ interview at 1400ET.
  • Whilst 2x50bp is seen as appropriate (fully reflected in pricing), both Powell and Mester last week noted an openness to larger hikes if necessary but with Mester specifically noting it as a Sep FOMC decision.

Source: Bloomberg

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