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Fed Rate Path Close To Post-FOMC Levels

STIR FUTURES
  • Fed Funds implied hikes have eased overnight but sit within the week’s range, including keeping inversion just under 50bps from the May peak to end-2023.
  • 33bp for Feb (-0.5bp), a cumulative 47bp to 4.80% for Mar (-1bp), terminal 4.86% May (-1.5bp) and 4.38% Dec (-2.5bp).
  • No scheduled Fedspeak sees second tier data releases as potential drivers.

FOMC-dated Fed Funds implied ratesSource: Bloomberg

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