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Fed Implied Rates Lift Off Yesterday Lows

STIR
  • Fed Funds implied rates have pulled back from earlier highs but still retrace part of yesterday’s decline, which had been linked to broader moves including oil pulling lower, rather than any specific data/headlines.
  • It leaves a rate path similar to late last week, with a cumulative 25bp of cuts for March, 77bp for June, 123bp for Sept and 158bp for Dec.
  • The next scheduled Fedspeak remains Barkin (’24) and FOMC minutes on Jan 3 but there is a return to more notable data today with jobless claims headlining.

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