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Fed Hikes Relatively Resilient After Nuclear Plant Seizure

STIR FUTURES
  • Hikes implied by Fed Funds futures sit only modestly lower than yesterday’s levels after Russia seized the Zaporizhzhya nuclear power plant, initially crunching lower on news of a fire (Dec’22 down as much as 17bps) before partially reversing as it was reported the fire was in a training facility and has since been extinguished.
  • Comments beforehand from NY Fed’s Williams pushing back on stagflation fears had seen a slight firming in hikes.
  • March continues to be pinned around the 25bp mark, whilst there are very nearly four consecutive 25bp hikes up to and including July (96bp) and a little under six hikes for 2022 (142bp).
  • Nonfarm payrolls ahead with potential asymmetric upside risks to March pricing: https://marketnews.com/mni-market-analysis-us-payrolls-preview-strength-seen-after-omicron-disruption

Source: Bloomberg

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