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Fed Rate Path Continues Ebb Lower

STIR FUTURES
  • Fed Funds implied hikes sit at 32.5bp for Feb (unch), cumulative 46bp to 4.79% Mar (-1bp), terminal 4.85% May (-1bp) and 4.35% for Dec (-2.5bp).
  • The terminal continues to slowly drift back to pre-FOMC levels of 4.80% having touched 4.9% in the interim, whilst sticking to 50bp of cuts to end-2023.
  • No scheduled Fedspeak with docket headlined by third readings for Q3 GDP/PCE and weekly jobless claims, the latter after a surprising dip lower for initial claims to 211k.

FOMC-dated Fed Funds futures implied ratesSource: Bloomberg

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